Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of 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 Carl Harald Janson: why biotech is on a 20-year bull run

Carl Harald Janson: why biotech is on a 20-year bull run

The manager of the International Biotechnology Trust explains why his confident about the sector's long term prospects.

Brewin's Gutteridge: the opportunities in UK challenger banks

Brewin's Gutteridge: the opportunities in UK challenger banks

In this week's podcast, Brewin Dolphin's Ben Gutteridge and Guy Foster, discuss opportunities in the global financials sector with Aptus' Johnny De La Hey.

Play How BlackRock Income Strategies is positioning for a crash

How BlackRock Income Strategies is positioning for a crash

Adam Ryan keeps his powder dry as he positions the BlackRock Income Strategies investment trust for a market correction. 

Your Business: Cover Star Club

Profile: how Close Brothers gave power back to the regions

Profile: how Close Brothers gave power back to the regions

Almost a year into the role, Close Brothers Asset Management head of wealth management Andy Cumming has highlighted three keys areas of focus

Wealth Manager on Twitter