Macquarie merges securities and commodities trading units

The Australian bank will combine its commodities, fixed income, derivatives and FX trading businesses. 

Australian investment bank Macquarie Group has merged its securities and commodities trading units, bringing the majority of its trading operations under one roof.

The bank will merge two of its three capital markets facing businesses, Macquarie Securities Group (MSG) and the Commodities and Financial Markets Group (CFM).

The integration brings together execution, research, derivatives trading, fixed income, foreign exchange and commodities businesses.

The restructuring means its CFM group head, Andrew Downe, will become group head of the newly formed trading unit while Stevan Vrcelj, MSG head, will step down.

Nicolas Moore, group CEO, stated the merger of the units was in response to “industry changes, client commitment, and the opportunity to provide clients with an integrated, end-to-end service across global markets”.

According to its half-year results, as of 30 September the combined income of its trading units was AU$1.9 billion, down 18% year-on-year. Its half-year report cited the decline in the MSG business was impacted by “limited trading opportunities due to market uncertainty,” while the CFM business saw “reduced client flow”.

The merger comes as many investment banks look to scale back their operations in Asia in a bid to reign in rising costs.

Barclays, Nomura and BNP Paribas are among the banks that have pulled back certain Asian operations following a slump in activity.