UBS announced today that they will be closing their energy and soft commodities trading desks. Anyone think this is a localized (UBS) issue or the start of a trend?
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Most of the talent there quit. the only strong group left was west power
Assuming then this is an isolated case with UBS, commodities trading at a bank still a viable option or given the opportunity to go with an energy company, steer clear of the banks?
Well, it's a matter of scale, I would say. Your major players are the only ones who can provide services on a massive level to a more public audience. To trade commodities, the trader needs to have the Series 3, so does any supervisor. You also need a compliance officer with the the series 30 exam, which covers regulatory and compliance in a supervisory role for commodities and futures. Most of your funds trading commodities may have a commodities trader and supervisor, but to get access to the actual markets, just like with trading through an executing broker, it's much better on a scalar level to trade through a broker, providing better timing and access to trade through an executing trader.
Assuming this is a localized case, limited to UBS, I would expect this to still be a viable option. Remember, everyone needs to have someone who can trade for them. Banks are just one avenue, even in this shrinking market.
Appreciate the info. Things are changing so fast these days its hard to get the facts straight which makes making the best decisions difficult too.
The trend seems to be a move to around 5 big banks dominating commodity derivatives trading, and virtually all other banks squeezed out of this business entirely.
The big 3--Goldman, Stanley, and Barclays--are not going anywhere. And JPMorgan seems determined to finally try to crack the top 3. Merrill also seemed determined, but with BofA running the show who knows whether that will continue.
What about Citi, Deutsche, and Credit Suisse? Anyone have any thoughts on whether those 3 will pack it in, or keep fighting?
Citi and DB has solid leadership and should be fine. They hired away some solid senior level folks that are going to really build their business.
http://online.wsj.com/article/SB122357859253419907.html?mod=googlenews_…
Looks like there will be some impact on the big players in the energy markets. Maybe an opportunity for those still around to step up. From what I can tell, banks in general are still hiring at all levels for energy/commodities.
Investment banks are not hiring. I had drinks with some people from ML, DB and JP last week. They are all in a freeze. Sure they will still be making offers to analyst and associate hires but your looking at maybe 4 jobs that are going to kids that intern there in the summer 08.
So if you did not intern on a BB energy desk in summer of 08 your chances of joining one in summer 09 are slim.
I have a friend at a BB and they can not even bring someone over from another department. Everyone is trying their best to stay idle.
Bonus should be down for many shops so look for a lot of movement come Feb/March.
Keep in mind that DB "seasoned" guys have 18 months exp, JP (bear energy) have around 24 months.... so no one is tied anywhere. Movement will happen.
Still quite a lot of movement happening in energy, I've heard of quite a few other shops hiring, just not the BBs. It's just not the time.
monty get your ass on haven't seen you in ages. you sleeping earlier these days? haha.
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