JP Morgan has re-hired a former proprietary trader five years after he left to join ill-fated UBS hedge fund Dillon Read Capital Management, in a rare example of a trader moving from a hedge fund to a US investment bank amid a steady flow of talent in the opposite direction.

Stefan Tsonev has joined the US investment bank as a managing director on the emerging markets proprietary trading desk in London, according to a source familiar with the hire. He is listed as working at the US bank from January 17 on the Financial Services Authority register of authorised persons. JP Morgan declined to comment.