* Goldman, Morgan cede top spots among OTC energy dealers
* JP Morgan builds on US, Asia energy biz
* Barclays holds Europe
* Citi ranks for global metals, U.S. energy derivatives
NEW YORK, April 22 JP Morgan and Barclays
snatched the top spots among energy derivative dealers last
year, opening a commanding lead over Goldman Sachs and Morgan
Stanley for the first time, according to a new survey.
Wall Street giant JP Morgan and UK-based Barclays
each dealt with an estimated 39 percent of all
companies that used over-the-counter derivatives to hedge energy
prices, according to Greenwich Associates' latest annual survey,
which included responses from 276 company treasury professionals
across the globe taken late last year.
Goldman Sachs had a 32 percent penetration rate, down
from 41 percent in the 2012 survey, when it had tied with JP
Morgan and Barclays for the top spot. Morgan Stanley's rate was
30 percent in the 2013 survey, down from 37 percent a year ago.
The widening gap between Wall Street's long-time leaders and
the ascendant JP Morgan and Barclays highlights a trend that has
become increasingly evident in recent years, with new limits on
proprietary trade, higher capital requirements and tougher
derivatives regulation upending the old order of things.
"The landscape...is becoming far more fragmented, as few
banks want to be all things to all people and more find specific
segments in which they can profitably compete," Greenwich
Associates consultant Andrew Awad said in the report.
Goldman's slip last year had been flagged in its 2012
results, showing commodity trading revenues collapsed by more
than 60 percent to just $575 million -- down nearly 90 percent
from a record $4.5 billion in 2009. Morgan Stanley's revenues
dropped 20 percent to an estimated $1 billion.
However the bank's storied J Aron commodity unit did retain
the top spot in one area: nearly 60 percent of commodity
investors, such as pension funds, deal with Goldman Sachs, down
from 63 percent a year ago. JP Morgan's share among investors
rose to 54 percent from 51 percent in 2012.
Rankings for global metals trade were little changed from a
year ago, with JP Morgan maintaining a strong grip on the top
spot thanks to its acquisition of RBS Sempra's metals division
three years ago. Barclays retained second position.
Citigroup appeared to make the most meaningful gains
among second-tier commodity dealers last year, rising into the
ranks of the larger U.S. energy and global metals dealers. Its
share among global energy hedgers was steady at 27 percent.
Global Energy Commodities 2013 2012 2011
Barclays* 39% 41% 38%
JPMorgan* 39% 41% 41%
Goldman Sachs* 32% 41% 39%
Morgan Stanley 30% 37% 38%
Citi 27% 27% n/a
Deutsche Bank 27% 30% n/a
U.S. Energy Commodities
JPMorgan* 59% 54% 48%
Barclays* 43% 46% 39%
Citi 40% ** **
Goldman* ** 46% 35%
European Energy Commodities
Barclays 40% 48% 46%
Morgan Stanley* 39% 42% 45%
BNP Paribas 33% 40% 40%
Deutsche Bank* ** ** **
Asia Pacific Energy Commodities
JPMorgan 44% 41% **
Goldman Sachs 39% 41% 47%
Barclays 36% 39% 43%
Deutsche Bank* 36% ** **
Morgan Stanley* 36% 46% 41%
Global Commodities Investors
Goldman Sachs* 59% 63% 65%
JPMorgan 54% 51% 50%
Barclays 47% 55% 60%
Deutsche Bank 46% 47% 40%
Morgan Stanley 37% 39% 43%
Global Metals Commodities
JPMorgan* 55% 60% **
Barclays Capital 34% 35% **
Citi 33% ** **
Deutsche Bank 33% 28% **
Societe Generale 26% 31% **
* Service quality leader
** no data provided
2011: Based on responses from 309 global corporation, 124 U.S.
corporations, 80 European corporations, and 68 Asia Pacific
corporations that hedge exposure to commodities using OTC
2012: Based on responses from 268 corporations that hedge
exposure to energy commodities using OTC derivatives: 91 U.S.
corporations, 77 European corporations, and 70 Asia Pacific
2013: Based on responses from 276 corporations that hedge
exposure to energy commodities using OTC derivatives: 88 U.S.
corporations, 89 European corporations, and 59 Asia Pacific
2011: Based on responses from 72 commodities investors using
2012: Based on responses from 71 commodities investors using
2013: Based on responses from 68 commodities investors using
2012: Based on responses from 97 corporations that hedge
exposure to metals using OTC derivatives
2012: Based on responses from 98 corporations that hedge
exposure to metals using OTC derivatives