Barclays and JP Morgan are the world’s leading dealers of over-the-counter (OTC) derivatives to corporates hedging energy commodities exposures and Goldman Sachs is the top dealer of OTC commodity derivatives, according to studies by Greenwich Associates.
The group’s report, entitled
‘2013 Greenwich Leaders: OTC Commodities Derivatives’
, finds that around approximately 40% of companies around the world that use derivatives to hedge energy commodities exposure name Barclays and/or JP Morgan as important dealers of OTC products.
Goldman Sachs and Morgan Stanley tie for the second spot among companies, with 30% to 32% of companies saying that they work with these firms, followed by Citi and Deutsche Bank, each of which is used as an OTC derivatives dealer by 27% of companies active in this market.
“Banks are rethinking their approach to the commodities business in light of new capital requirements and regulations,” said Greenwich Associates consultant Andrew Awad. “A number remain committed, but the landscape – which was altered dramatically over the past five to seven years by the huge investments in the business made by the commercial banks – is becoming far more fragmented, as few banks want to be all things to all people and more find specific segments in which they can profitably compete.”
However, a London summit on the industry’s introduction of the technology cautions that testing and acceptance are still at an early stage and firms should proceed with caution.
The Danish shipping and oil conglomerate confirmed that it will separate its businesses into stand-alone transport and energy divisions.
The central bank has tweaked its stimulus programme and is making a fresh effort to push Japan’s inflation rate above its 2% target.
A total of US$4.88 trillion of debt has been sold so far this year reports Dealogic, close to the level of 2007 when US$4.91 trillion of bonds were issued over the same period.