Barclays Cuts Off Hedge Fund Agricultural Commodities Trading

Feb 14 2013 | 12:53pm ET

Hedge funds that rely on Barclays to trade agricultural commodities will have to find a new partner.

The bank said Tuesday that it would stop trading soft and agricultural commodities with hedge funds as part of an overhaul designed to repair its battered image.

Barclays CEO Antony Jenkins said that the bank would stop speculative trading in such commodities for "reputational reasons." A source at the bank told Reuters that by "speculative," Jenkins meant exclusively hedge funds.

Barclays will continue to sell index-linked soft commodity and agricultural products.

In ending trading with hedge funds, Barclays joins a very small group of banks. Groups who complain that speculation in agricultural commodities drives up food prices and hurts poor countries, but to little effect. Commerzbank restricts trading in agricultural products, but Deutsche Bank last month ended a trading moratorium on agricultural derivatives.

At least one agricultural trader has left the firm as part of the restructuring, which will include at least 3,700 job cuts.


In Depth

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

When Less is More: The Case for Concentrated Equity Strategies

Jun 1 2015 | 7:59am ET

The conventional wisdom is that wide diversification is the “holy grail,” as...

 

Sponsored Content

Editor's Note