Swiss bank Credit Suisse is exiting its "small" commodities trading business, which includes energy and metals, to focus resources on more profitable parts of its business.
The closure of bank's commodities trading unit, under its fixed income department, is likely to affect up to 60 of the unit's 80 staff. A small proportion of the team left the company yesterday, while a larger number are helping the bank to exit existing positions over the coming three months.
The bank will continue to support customers' precious metal trades, which will be executed through its foreign exchange desk. Index products such as Gains will still be calculated.
Credit Suisse will continue providing commodity project finance. "Commodities trade finance is part of our corporate and institutional clients business, within private banking and wealth management (PB&WM). Any commodity-related business in other areas, such as in PB&WM will continue," the bank confirmed.
The decision to exit commodities trading follows a number of other banks' divestments of interests in commodities markets. Barclays and Deutsche Bank have closed desks since the beginning of this year.
The end of Credit Suisse's activities in coking coal removes one of the three main market makers for coking coal derivatives.
Former Credit Suisse trader Phillip Killicoat is setting up a ferrous desk at Goldman Sachs, with operations expected to start up before the end of August.
ne/egs
Send comments to feedback@argusmedia.com
If you would like to review other ArgusMedia.com content options, request more information about Argus' energy news, data and analysis services.
Copyright © 2014 Argus Media Ltd - www.ArgusMedia.com - All rights reserved.
