Banks tussle to join next generation of commodity dealers

Facing low volatility, a lack of trading opportunities and compliance headaches, major global investment banks are pulling back from commodities. But at the same time, a number of smaller and regional players are actively seeking to increase their involvement. Gillian Carr investigates

Commodities

A sinking feeling has pervaded Wall Street recently. During the past few years, commodity revenues have been falling at major global investment banks. Industry titans such as Deutsche Bank, JP Morgan and Morgan Stanley have decided to quit large parts of the commodities market, or leave it altogether. According to London-based financial analytics firm Coalition, commodities revenue at the top 10 global investment banks fell from a combined $14.1 billion during 2008 to just $4.5 billion during

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