New mix of players keeps commodities competitive, JP Morgan says

The commodities market may have lost some of its former giants over the past year, but it remains just as competitive, the co-head of commodities at JP Morgan said.

Michael Camacho told Metal Bulletin that the change in commodity market participants had helped create new opportunities for the US investment bank.   “From our perspective, the market continues to be competitive. We don’t think that because some banks pulled out, it is less competitive; if anything, the market continues to be just as competitive, just with different players in the mix,” he added. Western banks, in the USA and Europe in particular, have faced an ever-changing landscape of regulation since the 2008 downturn – a situation that has helped lead a number to step back or amend their activities accordingly. For its part, JP Morgan recently sold a large portion of its physical commodities business to Switzerland-based Mercuria, one of several companies that has, in turn, boosted its presence in the sector. That $800 million deal included its Henry Bath warehousing business, but did not include the bank's physical bullion and gold vaulting business. But...


Andrea Hotter

November 26, 2014

21:47 GMT

New York