JPMorgan is boosting its commodities headcount, in a sign that big banks in Hong Kong and Singapore are finding some solace in this sector.

The i-bank employs 42 front office commodities staff in Singapore, including a dozen recent recruits, its third largest team after New York and London. The newcomers are mainly sales and marketing pros in the energy and metals sectors, across all job levels from analysts to executive directors, says JPMorgan communications manager Ray Bashford.

Immunity in commodities?

Recruiters say bulge bracket staff cutbacks and hiring freezes aren’t hitting commodities. JPMorgan continues to make further “selective hires”, adds Bashford.

Stanley Teo, a director at Profile Search and Selection in Singapore, thinks JPMorgan and its rivals are mainly hiring marketing and sales people, ideally with connections in China and other Asian markets.

Sales jobs are hot in Hong Kong too, says Adrian Hall, head of FICC Asia at Sheffield Haworth. “While we have observed selective hiring on the trading side in Hong Kong too, Singapore is foremost a distribution hub, with many deals being priced and traded in London

Constraints on poaching

A shortage of finance sector commodities talent means inter-bank poaching has its limitations. Teo explains: “Banks will also look at boutique commodities firms and the corporate sector – the oil and gas majors. These guys have industry contacts and they understand the buy-side.”

Money is another plus of working for an i-bank, says Hall. “Coming from the corporate sector to an investment bank, there is a requirement to develop derivatives skills and the possibility of a more attractive financial package.”

And the banks are going global to capture their commodities crew. “There is a particularly limited number of commodity derivatives specialists in Asia, and in light of current demand it is increasingly important to identify potential candidates outside of the region,” adds Hall.