Goldman Sachs and JP Morgan Lead Market Among Corporate Energy Hedgers

Greenwich Associates has announced its list of 2010 Greenwich leaders in over-the-counter (OTC) commodity derivatives among companies and investors around the world. With corporates that use OTC energy derivatives, the global 2010 Greenwich share leaders are Goldman Sachs and JP Morgan, both of which were cited as counterparties by approximately 40% of large companies that employ these products to hedge energy exposures.

Goldman Sachs and JP Morgan are also the global 2010 Greenwich quality leaders among corporates – a designation earned by firms whose clients award them quality ratings that exceed those given to competitors by a statistically significant margin.

Among commodity investors, the 2010 Greenwich share leaders in global OTC commodities derivatives are Goldman Sachs and Barclays Capital. The 2010 Greenwich quality leaders in the investor segment are Barclays Capital, Deutsche Bank and Goldman Sachs.

“Over the past several years, the number of firms with competitive OTC commodity derivatives platforms has expanded as various dealers have continued to invest,” said Greenwich Associates consultant Andrew Awad. “As a result, the competitive landscape – which was once dominated by a few firms that specialised in this business – has become flatter and more fragmented.”

Regional Leaders in the Corporate Market: US, Europe and Asia-Pacific

In the US, four firms were awarded the title of 2010 Greenwich share leader in US energy commodities – OTC derivatives: JP Morgan (with a market penetration score of 48%), Barclays Capital (market penetration score of 39%), Morgan Stanley (35%) and Goldman Sachs (35%). The 2010 Greenwich quality leaders in US energy commodities – OTC derivatives service quality are Goldman Sachs and JP Morgan.

In Europe, the 2010 Greenwich share leaders in energy commodities OTC derivatives are Barclays Capital (market penetration of 46%), Morgan Stanley (45%), BNP Paribas (40%), and Goldman Sachs (40%). The 2010 quality leaders in this region are Goldman Sachs, Morgan Stanley and Barclays Capital.

In Asia-Pacific, the 2010 Greenwich share leaders in OTC energy derivatives are Goldman Sachs (market penetration 47%), Barclays Capital (43%), Morgan Stanley (41%) and Deutsche Bank (37%). The 2010 quality leaders in this region are Citigroup and Goldman Sachs.

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