LONDON: 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 inv- Reuters
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