Barclays Plc (BARC) hired three commodities directors from JPMorgan Chase & Co. last month and an oil trader from Citadel LLC.
Crude oil trader Thomas Wiktorowski-Schweitz joined from Citadel and is based in London, the bank said in an e-mailed response to questions today. Rebecca Lee joined as director in commodities sales in New York, Phil Hardwick is London-based director in energy sales, and Thomas Horn was hired as director in commodity-linked finance in Hong Kong. They all worked at JPMorgan.
Barclays said in May it was looking to make “selective” hires in commodities after shrinking trading staff last year and reining in value-at-risk, an estimate of potential trading losses. Barclays tied with New York-based JPMorgan as the leading provider of over-the-counter derivatives to companies hedging energy and ranked second in hedging metals, a survey from Greenwich Associates showed in May.
Revenue from raw materials at the 10 biggest investment banks fell 20 percent in the first half, according to analytics company Coalition. JPMorgan generated the most revenue from commodities in the first six months this year, followed by Goldman Sachs Inc. and Morgan Stanley, it said. JPMorgan plans to get out of the business of owning and trading physical commodities, it said in July.
The U.S. Federal Reserve is examining legal and regulatory exemptions that allow banks to participate in the commodities markets.
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