NEW YORK, April 25 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
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.