(Adds background on Morgan Stanley's purchase of Deutsche
Aug 21 Deutsche Bank has sold its
North American natural gas trading book to Morgan Stanley
, a source familiar with the deal said on Thursday.
Deutsche Bank and Morgan Stanley declined to comment.
The sale was first reported by energy news portal
Sparkspread earlier on Thursday. The portal did not give a value
for the deal, saying details were not immediately available.
Last month, Morgan Stanley bought Deutsche Bank's bulk
commodities trading book in coal, iron ore and freight forward
The bulk commodities book was one of 17 put up for sale by
Deutsche, Germany's largest bank and one of the top-five
financial participants in commodities, as part of its decision
to exit commodities trading because of toughening regulations
and diminished profits.
The acquisition of the bulk commodities book was to broaden
Morgan Stanley's customer base and make it the counterparty for
structured transactions with a wide range of end users.
The expansion of its derivatives business comes at a time
Morgan Stanley's physical business is drawing intense scrutiny
from U.S. regulators and politicians concerned about the
involvement of Wall Street banks in physical commodity markets.
(Reporting by Barani Krishnan; Editing by Lisa Von Ahn and