Bloomberg reports that the world’s biggest investment banks have greater staff turnover in commodities than in fixed-income and currencies because of tightening regulations on trading, according to Coalition, a London-based research company.
That reflects “general market confidence and demand from non-banking competitors including trading firms, which do not have the same levels of regulatory constraints,” Coalition said in an e-mail, without giving figures. Coalition, founded in 2002, uses company announcements, its own research, media articles and information from people in the market.
JPMorgan Chase and Bank of America Corp. are among banks that shut units trading the banks’ money in commodities before the implementation of the Volcker rule in 2012 that will limit such practices. The Commodity Futures Trading Commission is curbing the size of positions any one party can take in U.S. raw-material derivatives. Revenue from banks’ commodity units is still growing faster than overall sales, Coalition said.
Read more at http://www.bloomberg.com/news/2011-11-25/commodity-staff-turnover-at-banks-seen-increasing-as-trading-rules-toughen.html
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