NatWest Markets' trading MDs are fretting after yesterday's unexpected cuts
As we reported yesterday, NatWest Markets is closing its US and European government bond desks and withdrawing from primary dealership programmes outside the UK. Insiders fear that this is only the start.
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NatWest didn't comment for this article, but a spokesperson yesterday said the cuts will allow the bank to focus resources on other areas. Bloomberg said these areas will include the financing business and insiders say that Stuart Connell, head of private financing at NatWest Markets will now have a bigger role within the markets business.
The changes do not appear to have been anticipated. Multiple sources say they came as a surprise yesterday, even to managing directors. Many are now fretting that there will be more cuts to come - even though only around 10 jobs have been put at risk so far, there are fears that this will grow in time.
Material risk takers, including senior traders, at NatWest earned an average of $1m last year according to NatWest's Pillar 3 filing for 2025. There are suggestions that top traders at the bank are paid generously given individual PnL that is diminutive compared to rival banks. There are also unconfirmed suggestions that some of those leaving generated higher PnL than some of those staying.
Although NatWest is closing its European and U.S. primary dealership programmes, it remains committed to the UK gilt market and to support clients in the UK and Europe. From Q1 2027, it will be focused on fixed income and markets financing, currencies and debt capital markets.
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