ICAP Returns to Commodities as Interest in Sector Rapidly Rising

TP ICAP has unveiled that the company is returning to commodities trading. The news comes amid a sharp increase in oil prices in recent months and a difficult geopolitical environment that has been further complicated by rising prospects of a global trade war.

ICAP's Oil brokerage will be headed by Joe Hutchinson, a figure well-known in the industry. Hutchinson has long been one of the top oil brokers in the world, previously serving as Head of Oil Broking at ICAP between 2000 and 2013.

A wealth of experience

After his career at the brokerage ended due to the downsizing of the industry amid a slump in energy prices, Hutchinson co-founded two companies. Energy Works, where he is currently a Non-Executive Director is a business that is focused on clean tech, while Oak Futures, which he left in August last year, is a proprietary trading house focused on the energy market.

TP ICAP’s move marks the comeback of the world’s largest inter-dealer broker into oil trading. The company’s new unit is aiming to provide a full list of oil products globally.

Commenting on the company’s move, the Head of ICAP Energy and Commodities, Graham Francis, said: "we are delighted to be back in the Oil market and to welcome Joe back to the firm. We are committed to providing a premium service to our clients across the full suite of Energy and Commodities products.”

“The proposition of combining experienced brokers with former traders and supporting them with innovative technology will enable the ICAP Oil business to offer its clients a unique and high quality offering,” Francis elaborated.

Goldman alumni start commodities macro fund

On Thursday, the Wall Street Journal reported that Goldman Sachs alumni Jonathan Goldberg is starting a new macro fund that will focus on commodities. The part of his venture BBL Commodities is also joined by former Goldman Sachs employee Ben Jacobs.

The fund is starting with a commitment of $250 million from the company and is expected to reach $1 billion by the end of the year.

According to Goldberg, “tectonic changes” in the commodities market will lead to big opportunities from a global macro perspective. The fund will be focusing not only on oil, but also on commodity currencies such as the Australian dollar and the Russian rouble.