Brokerage Mint Partners to start Singapore operations: sources

SINGAPORE (Reuters) - London-based Mint Partners, which was acquired by interdealer broker BGC Partners Inc (BGCP.O) in 2010, is expanding into energy brokerage in Asia by starting a middle distillates broking desk next month, industry sources familiar with the matter said.

Mint Partners did not respond to queries from Reuters.

Interdealer brokers operate in the over the counter derivatives market and act as intermediaries between major dealers to facilitate trades between them.

Mint Partners has hired at least two middle distillates brokers, Andrew Pearce and Elliot Pitcher from rival firm ICAP to start the desk in June, the sources, who have knowledge of the situation, said.

Four others, two from OceanConnect, one from BGC Radix and one from TFS Energy could also be joining the firm, added the sources, who asked not to be identified. But this could not be confirmed.

It is unclear if the brokerage firm plans to offer the whole spectrum of energy products, but one of the sources said it could also be starting a fuel oil and crude oil desk.

Mint Partners, an agency broker that opened in 2004, has its headquarters in London, with the business expanding with offices in Dubai, New York and Switzerland, according to BGC Partners' website.

From its initial focus on the institutional equities market, the firm's scope has broadened to credit, rates, foreign exchange, commodities and energy products, it stated.

The firm says it has more than 500 clients, including FTSE listed companies, financial institutions, private equity firms and hedge funds, and more than 100 brokers at the time of the acquisition by BGC Partners.

BGC Partners, which bought the majority of Mint Partners' assets for 306,001 sterling ($482,000), according to a filing with Britain's Companies House, is active in the global fixed income, interest rates, foreign exchange, equity derivatives, credit derivatives, futures and structured product markets.

BGC Partners is not new to the commodity business. It expanded into brokerage services in the energy markets by acquiring Singapore-based Radix Energy in March, 2008, with oil products including crude oil, naphtha, middle distillates, fuel oil and freight swap derivatives.

MIDDLE DISTILLATES VOLUMES

Middle distillates volumes traded in the over-the-counter market have been steadily increasing, with a rise of nearly 20 percent in 2011 volumes over 2010, to stand at about 453 million barrels, Reuters data shows. <PS/A>

Derivatives trading in 2012, however, has suffered a slowdown, sapped by the weak global economic outlook and high oil prices that have capped fuel demand. Just 148 million barrels traded from January to April this year, the data showed.

Still, in the interdealer broker field, there is often fierce rivalry between companies to hire the most sought-after individuals.

There are at least six other brokerages dealing with middle distillates in Singapore --ICAP, TFS Energy, BGC Radix, PVM Oil Associates, OceanConnect and Ginga Petroleum.

(Reporting by Jessica Jaganathan; Editing by Clarence Fernandez)