15 February 2010
Macquarie Group's Energy Markets Division (EMD) today announced plans to start a physical oil trading business in Singapore having hired a six person team led by industry veteran Steven Taylor.
This new team brings a range of proven trading strategies based on low risk intermediation and client service within the global oil trading value chain. Its members also have substantial Asian physical oil experience spanning trading, structured origination, logistics and operations.
Mr. Taylor joins as Division Director and Head of Physical Oil in Asia. He joins from Masefield AG, an independent oil trading firm based in Zug. He was based in Singapore for the past 5 years, with a focus on Asia-based trading strategies. Prior to that Mr. Taylor spent 20 years with Shell Group companies in a variety of Asian and global roles within the refining, supply and trading functions.
"The team's experience and relationships provide a solid base from which to grow this complementary physical trading opportunity, alongside our well-established global paper oil trading. We see many opportunities to create value from the team's integration, through broader client relationships, the combination of finance and/or price risk management services with physical supply and offtake, and a deeper understanding of the traded oil and refined oil product markets from adding a Macquarie Group of Companies valuable physical perspective to our trading desk," said Nicholas O'Kane, Global Head of Energy Markets.
"We see a particular opportunity in physical oil trading from an Asian viewpoint, as the region consolidates its leading position based on the growth of substantial new refining capacity, feeding the region's high-growth economies, and taking a greater share of markets as far afield as Europe and the west coast of the Americas" added David Heard, Head of Oil & Gas Asia.
This expansion follows the successful development of EMD's physical natural gas and electricity trading businesses in North America and Europe, as well as the global reach of the physical coal trading operation based on a similar seaborne cargo opportunity. Experience gained from these markets has encouraged EMD to further extend its physical presence into oil as a means to differentiate and broaden the client offering, and support consistent trading profitability based on underlying physical movement of essential commodities.
The physical oil business expects to commence trading progressively in the coming months as regulatory and operational requirements are completed for key jurisdictions in Asia.
EMD is a global sales and trading business participating in the following core businesses: US physical and financial natural gas, coal, oil trading, power, and UK utilities. The division provides innovative and tailored solutions for energy market participants globally by delivering energy price risk management ideas, analysis and execution to clients across the spectrum of energy production, conversion and consumption. EMD has five sales desks globally who are committed to providing structured finance, risk management and selected physical commodity solutions to a broad customer base.
EMD is part of Macquarie Group's Fixed Income, Currencies and Commodities (FICC) business grouping. FICC is involved in a broad range of financial markets trading activities. Its services range from 24-hour trading in the Australian dollar and base metals to managing a clients entire treasury operation.
About Macquarie Group and Fixed Income, Currencies and Commodities
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services.
Macquarie's main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients, and counterparties around the world.
Macquarie Group Limited is listed in Australia (ASX:MQG) and is regulated by APRA, the Australian banking regulator, as the owner of Macquarie Bank Limited, an authorised deposit taker. Macquarie also owns a bank in the UK, Macquarie Bank International, which is regulated by the FSA. Macquarie's activities are also subject to scrutiny by other regulatory agencies around the world.
Founded in 1969, Macquarie operates in more than 70 office locations in 28 countries. Macquarie employs more than 12,700 people and had assets under management of $A216 billion at 30 September 2009.
Fixed Income, Currencies and Commodities (FICC) provides a variety of services across the globe with an underlying specialisation in interest rate, commodity or foreign exchange related institutional trading, marketing, lending, clearing or platform provision.
The predominant FICC client base is financial institutions and significant commodity producers and consumers. With structuring, sales and trading professionals in the Australia, New Zealand, the Americas, Canada, Asia and the Middle East, FICC offers quality service and risk management solutions to meet our clients' needs.
FICC offers trading, sales, research and finance covering:
FICC operates in most major trading markets and emerging markets around the world.
Macquarie Group Public Relations, Asia
Tel: (852) 2823 3591
Mobile: (852) 9039 4379
Macquarie Group Public Relations, Asia
Tel: (65) 6231 2749
Mobile: (65) 9105 2628