Copying and distributing are prohibited without permission of the publisher
BANKS: Citi still sees opportunity in more regulated, less volatile commodities markets
August 08, 2014 - 15:52 GMT
Citi is confident that it can run a lucrative commodities business in less volatile, more heavily regulated markets, the bank’s head of commodities sales told Metal Bulletin.
Increasing compliance costs and low volatility have together
driven margins in commodities banking progressively lower over
the past few years and changed the landscape of the sector
markedly, Citi’s José Cogolludo said in an
interview. With costs rising and order volumes falling, running
a vanilla agency-style commodities brokerage is not an
attractive proposition in the post-crisis, post-supercycle
environment, he said. In addition, new regulations are
prohibiting banks from trying to boost profits by trading
commodities for their accounts. In any event, this is becoming
less rewarding as commodity prices chop about in narrower
ranges, he said. However, there...
All material subject to strictly enforced copyright laws. ©
Euromoney Institutional Investor PLC.
Please log in using your online subscriber details.
Your username will be your registered email address with Metal Bulletin.
If you aren't a subscriber yet, feel free to take a seven day free trial, or subscribe using the instructions below.
A standard subscription include one year's worth of news and prices. You can also upgrade to the full archive and benefit from more than 15 years of intelligence. Start your subscription today.
Taking a free trial will give you open access to Metal Bulletin online news, prices, archived content and email alert service for the next seven days. Start your free trial today.