Barclays said on Tuesday that it has closed its power trading desks in London and New York, joining a string of global investment banks that are paring down their commodity market activities as increased regulations bite.
Reuters reports that Barclays, a top-five banking player in commodities trading which is in the process of shrinking its investment banking activities, said its 'core commodities franchise continues to operate business as usual'.
'We will continue to actively manage our existing books to minimize any impact on our clients' business', the bank said in a statement.
Like other large investment banks, Barclays faces regulatory pressure to shore up capital and curb proprietary trading, which has eaten into profits and driven top trading talent to privately-held commodity trading houses.
Barclays has reduced its activity in the power trading sector in recent years. It scaled back its European energy desk in 2013 when its head of energy research left the company.
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image: © Dick Johnson