JP Morgan is pressing ahead with plans to move its proprietary trading unit out of its investment bank and into its asset management division. Mike Stewart, currently co-head of the bank’s global emerging markets business, will lead the new group, which is expected to be seeded with about $2bn by JP Morgan, according to a person familiar with the situation.

Plans have not been formalised but it is likely the capital will be divided across three areas, emerging markets, credit, and equities, with a separate fund launched for each. Stewart will lead the emerging markets investments, while Fahad Roumani, a managing director in credit proprietary trading, will run credit and Deepak Gulati, head of global equity proprietary trading, will be in charge of equities. Globally, proprietary trading in fixed income and equities accounts for 50 to 75 staff, and while most of the business is based in London, there are also offices in New York and Singapore.