Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

JP Morgan to sell commodities trading business

JP Morgan to sell commodities trading business

JP Morgan is set to become the latest investment bank to sell its physical commodities trading business after entering into exclusive talks with Mercuria on a deal.

According to the Financial Times, the move would see JP Morgan’s presence in the oil, coal and natural gas markets reduced hugely. Deutsche Bank has signalled its intent to leave the commodities market, while Morgan Stanley has also been reducing its footprint in the oil market.

Higher regulatory capital requirements are cited as one factor behind the banks’ looking for the exit, while JP Morgan has fallen foul of regulators and agreed to pay over $400 million to settle claims it manipulated energy markets.

Mercuria, which is based in Geneva, was founded by two former Goldman Sachs traders and after starting out in oil, it has branched out into a number of physical commodities.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Play Wealth managers reveal the best investment ideas of the year

Wealth managers reveal the best investment ideas of the year

From robotics to impact investing, wealth managers share the best ideas they have heard this year.

Play Baillie Gifford's Earnshaw on Xi Jinping's 'new era'

Baillie Gifford's Earnshaw on Xi Jinping's 'new era'

Sophie Earnshaw talks through what Xi Jinping's 'new era' means for investors. and why Chinese tech offers some of best growth stocks in the world.

Read More
Your Business: Cover Star Club

Profile: JM Finn on why the future is with financial planners

Profile: JM Finn on why the future is with financial planners

There is a lot of work on pension consolidation and Sipps have been a big driver there, says JM Finn chief executive

Wealth Manager on Twitter