Jefferies Reportedly Phasing Out Fixed-Income Outsourced Trading Business as Head Plans to Leave

Jefferies Financial Group is gradually winding down its fixed-income outsourced trading business, exiting a line it was trying to expand just a year ago. According to Sina Finance, people familiar with the matter said Joram Siegel, who heads Jefferies' fixed-income outsourced trading business, is expected to leave. The people asked not to be identified because the information is not public. Siegel joined Jefferies in early 2024, according to his LinkedIn profile, after previously leading a similar business at Marex. A Jefferies spokesperson declined to comment, and Siegel did not respond to a request for comment. Last year, the company was still recruiting new traders for the business, which provides fixed-income trading services to resource-constrained asset managers. Its decision to exit now underscores the challenges outsourced trading firms face as they try to expand into new areas. A survey by financial analytics firm Crisil Coalition Greenwich showed that at least 15% of equity buy-side traders are using outsourced trading providers, up from 10% two years earlier.