Tradition, the money broker, is launching a 12-strong European government bond team and has poached Iain Jackson, head of government bonds at rival MIS Interdealer Brokers and eight of his colleagues to staff it.

Tradition is creating the division in a bid to capitalise on the fast-growing volumes in the industry. It will compete with market leaders Icap and Tullett Prebon, as well as MIS and its sister company, BGC Partners.