Glencore IPO Shows Unregulated Traders Beating Goldman Sachs

For Goldman Sachs Group Inc. and Morgan Stanley, two of Wall Street’s biggest commodities-trading firms, the year’s largest initial public offering represents a nightmare come true: the rise of unregulated rivals.

Glencore International AG’s IPO probably will catapult the Baar, Switzerland-based commodities firm from relative obscurity onto London’s FTSE 100 list of most valuable stocks this month. Chief Executive Officer Ivan Glasenberg, 54, a former coal trader, owns a 16 percent stake in Glencore worth $9.6 billion if the sale assigns the firm a mid-range value of $61 billion.