Citi beefs up commodities with UBS metal exec hires
NEW YORK, April 25 (Reuters) - Citigroup Inc has hired two former UBS AG base metals executives to its growing metals trading desk as part of the U.S. bank's expansion of its commodities business, the bank said on Thursday.
Rick McIntire will join as global head of base metals sales and Dylan Morgan has been appointed co-head of base metal trading alongside Tom Parkin. Both were previously at UBS.
The commodities expansion comes after Citi started to broaden its commodities business last year. That effort has been led by Jose Cogolludo who joined as global head of sales, in a newly created role, from BNP Paribas last year.
These hires also follow a string of energy appointments in Houston, Texas, all of whom have joined from Deutsche Bank.
The bank has been playing catch-up with larger U.S. energy and metals dealers just as new limits on proprietary trading, higher capital requirements and regulatory clampdowns on derivative trading have roiled many of the biggest players.
Some banks have also taken advantage of a retreat by European banks, including Natixis Commodity Markets, which have reined in exposure to capital-intensive commodities.
The pace of Citi's growth over the past year in commodity derivatives was evident in Greenwich Associates' latest report released this week.
In an annual survey of 276 company treasury professionals across the globe taken late last year, the bank appeared to make the most meaningful gains among second-tier commodity dealers.
In metals, it was ranked third behind JPMorgan Chase & Co and Barclays Capital, with an estimated 33 percent of all companies that used over-the-counter derivatives to hedge metals prices.
Citi is one of 29 category-two members, or associate broker clearing members, of the London Metal Exchange, which means it can issue contracts, trade on electronic platforms and the telephone market but may not trade in the ring.
McIntire will join in mid-July, reporting to Cogolludo and Dylan will start in mid-May, reporting to Jason Tudor, who started at the bank in September 2011.
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