Barclays Capital has hired a former managing director from Bank of America Merrill Lynch's prime brokerage division as it continues to strengthen its own business serving hedge funds, which increased profits by 5% in the year to June 30.

New York-based Mark Bailey has joined Barclays Capital this month as global head of treasury for its equity financing division, which sits within prime services, according to two people familiar with the situation. He left Bank of America Merrill Lynch earlier in the summer.