Last June, JP Morgan's e-mail carried an unusual farewell message from Till Guldimann, the firm's head of global research. Guldimann, 46, announced he was leaving the firm and was considering a number of options. "I can't be more specific now other than saying it will be small, different and risky," he wrote coyly.

How "small, different and risky" became clear in September, when Guldimann joined Infinity Financial Technology, a derivatives software company, to help develop the company's next generation of risk management systems - a piece of news that made it to the front page of the Wall Street Journal. In his final e-mail communiqué he waxed enthusiastic: "Their products are terrific, the troops are half my age and twice as smart (thus equal) and they will conquer the world even with me hanging on (jealous?)"

At Morgan, Guldimann was known as the father of RiskMetrics, the firm's widely distributed set of standards for measuring market risk. Guldimann is credited with pushing the idea through the bank bureaucracy, arguing there was more value in making a version of the firm's risk methodology available to clients than in keeping it proprietary.

At Infinity, Guldimann wants to go beyond derivatives - and trading risks - to focus on firm-wide risk management covering all positions and asset classes. "The big market risks tend to be in portfolios that often do not include derivatives," he says. "Derivatives positions tend to be marked to market daily, while other investment positions are often not, and managed on an accrual accounting basis. The big swings in their market value become hidden in the meanderings of accrual accounting."

In his new venue, Guldimann shares a cubicle with two other people and the copy and coffee machines, but doesn't seem to mind. "I don't want to sit in long meetings and manage a lot of people any more, I want to focus on advancing the craft of risk management and building new products," he says. "This is my second life."

When Charles Smithson announced he was leaving Chase Manhattan Bank for the Canadian Imperial Bank of Commerce last spring, a lot of people wondered what - other than a bigger paycheck - would have possibly inspired him to give up one of the cushiest setups in the derivatives business.

The answer: The chance to start his own private university.

Smithson had been in charge of Chase's risk management research and education efforts, and was given leave to set up a research outpost in Princeton, NJ, a ten-minute drive from his home. There he cranked out a steady stream of material, including Managing Financial Risk, a definitive introductory textbook on risk management.

Now Smithson commutes two hours each way to CIBC's Manhattan offices as head of the "CIBC Wood Gundy School of Financial Products," a mini-university of risk management within the bank. The fall schedule includes 14 half-day classes that are free to the bank's clients. Class topics begin with Derivatives 101's fundamentals, such as basic strategies and pricing issues, to be taught by Smithson and others. Advanced classes on options theory will be taught by university academics. An expanded schedule is in the works for 1996.

Smithson, 49, is no stranger to the chalk board. He worked as an economics professor at Texas A&M for nine years before jobs at the Federal Trade Commission, Continental Bank and Chase. Says CIBC executive managing director Mike Rulle, "Many people told us that our decision to hire Charles was at least as impressive as our decision to have the school."

Last month Deutsche Morgan Grenfell saw 11 New York derivatives professionals walk off the set and join West Merchant Bank (WMB), a subsidiary of Westdeutsche Landesbank. Leading the pack were Timothy Ball, now WMB's senior vp and regional head of OTC derivatives for North America, and Patrick Trozzo, who now heads up OTC derivatives trading. According to WMB, the moves represent "a key part of our ongoing effort to strengthen and expand our position in global markets."

Nationsbanc-CRT has dipped into Merrill Lynch FX talent pool a second time. Last year's departure of Mike Kukanza to head the bank's options trading team was followed last month by the defection from Merrill of his former colleague, John Gannon. Gannon will join Nationsbanc CRT's FX options trading team, with the title of vice president, senior FX dealer.

Citibank has lost John G. Hornblower, the marketing head of its global equity derivatives effort, to Cantor Fitzgerald. In his new post Hornblower, who previously served at CS First Boston and Salomon Brothers, will direct the firm's convertible sales effort.