he number of City of London financial jobs remained stable in August, with the number of new jobs created down 3 per cent compared to July, according to UK-based financial services recruiter Astbury Marsden. Following the summer lull, the firm expects IPO and M&A activity will lead to increased hiring.

The number of City of London financial jobs remained stable in August with the number of new jobs created down 3 per cent compared to July, according to UK-based financial services recruiter Astbury Marsden. Following the summer lull, the firm expects IPO and M&A activity will lead to increased hiring.

Astbury Marsden said 2,580 new jobs were created in the City in August compared to 2,670 in July, up 4 per cent from the 2,490 new roles created in August 2013.

“Hiring activity in the City was static in August as a strong equities market offset a slowdown in fixed incomes currencies and commodities trading,” said Simon Leveson, senior consultant at Astbury Marsden.

Leveson said that following a summer lull, he expects a surge in IPO and M&A activity to boost hiring in equities trading and corporate finance departments.

“The banks and brokerage houses are likely to see more work come through the door as companies look to join the latest IPO rush,” said Leveson.

Astbury Marsden said City hiring activity had been partly held back by a drop off in revenue from fixed income currencies and commodities (FICC) operations at the large investment banks.

According to data firm Coalition, revenue from FICC trading fell by 13 per cent in the first half of 2014, while earnings from foreign exchange trading at the investment banks fell 35 per cent, the fastest rate since the financial crisis.

“The investment banks continued to trim their FICC-oriented sales and trading in favour of more reliable income generators. The profitability of these teams has been squeezed by the stricter capital requirements, making it more expensive for banks to hold large levels of corporate bonds and other assets on their balance sheets,” said Leveson.

“Investment banks have been hit particularly hard by the reduction in foreign exchange trading, which has been caused by a lack of volatility and low volumes. Some firms have had to make significant cuts in staff in order to reduce their cost income ratio and to boost profits,” he added.