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

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR