Investment banks shed jobs at the fastest rate since 2014 in the first quarter, according to Coalition, despite a surge in trading revenue and volatility caused by the coronavirus pandemic. Equity units were particularly affected, with full-time front office roles shrinking by 10%.
Data gathered from 12 global investment banks shows US banks outpaced their European rivals as trading increased amid the coronavirus pandemic in Q1, gaining 74% of the total equity fee pool. Europe's banks saw their revenue share drop to its lowest level in more than five years, with seven leading names taking just 34% of a $33.9 billion pool of global trading revenues over the period.
Clients rated JPMorgan the best bank general clearing member, with Bank of America Merrill Lynch and Goldman Sachs tied at a close second, according to the Acuiti GCM Review. GH Financials was rated the top non-bank GCM, followed by INTL FCStone and Marex Spectron.
Production cuts and lifting of lockdowns have crude oil traders expecting the market will near balance in coming months as the worst of the coronavirus pandemic ends. "Provided producers continue to limit output, the market should gradually move into deficit over the second half of the year as transport systems reopen, which should arrest and then start to reverse the stock build," analyst John Kemp writes.
Full Story: Reuters (5/12)
Buy-side traders, who normally flourish on large teams sharing information and working in close proximity, have had to adapt to entirely new practices while working away from their trading desks, all while navigating some of the most volatile markets to date.
JPMorgan is providing banking services to cryptocurrency exchanges Coinbase and Gemini. The bank reportedly decided it could work with the exchanges because they are regulated by US authorities and registered with the Financial Crimes Enforcement Network.