April 20 Barclays is planning to
withdraw from parts of the metals, agricultural and energy
markets, echoing moves by other major players like JPMorgan
Chase and Morgan Stanley away from the
commodities business, the Financial Times reported on Sunday.
The UK bank is expected to announce the changes on Tuesday,
which include heavy cuts to its global commodities trading
staff, the newspaper reported.
The FT said Barclays is making the move because conditions
in the commodities markets have grown unfavorable recently.
Revenues have fallen and regulators have increased their
scrutiny of the space.
Barclays declined to comment.
Barclays Chief Executive Antony Jenkins has undertaken a
third review of the investment bank in as many years in response
to pressure to cut costs and improve returns, which lag other
parts of the business such as Barclaycard.
Analysts are expecting cuts in areas like credit trading,
emerging markets, securitization, structured credit and equity
derivatives. The bank has already made some cuts in commodities,
and it is considering selling its index business.
On Friday, Barclays announced a shakeup of its investment
bank management team, including a new head of markets and new
co-heads of banking.
(Reporting by Emily Flitter in New York; Editing by Leslie