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Where the laid off Deutsche Bank commodities traders are going to get rehired…

What the agricultural commodities traders did next

What the agricultural commodities traders did next

Christmas is coming and Deutsche Bank is making 200 of its commodities traders redundant. It’s not a question of traders’ ineptitude. It’s not a question of seasonal dysfunction. It’s because of weak client activity and heavy regulatory scrutiny.

So what do you do if you’re one of Deutsche’s unwanted? Unfortunately, you’ll be joining a market that’s thick with laid off commodities professionals – Morgan Stanley and JPMorgan have also been trimming commodities teams this year and research company Coalition recently predicted that commodities revenues will fall 13% in 2013.

But there is hope. Recruiters and commodities traders say there is still some hiring happening in banks’ commodities trading arms. This is where it’s at (allegedly).

1. Macquarie:  Big commodities bank, said to be going back to its roots, rumoured to be hiring in London.

2. Citi: Big US bank, been busy with markets recruitment this year, said to be open to commodities hires globally, been doing some big hiring this year. 

3. BTG Pactual: Brazilian bank, starting a little commodities trading and warehousing business.

4. Bank of America Merrill Lynch: Said to have a nice stable commodities team by headhunters, might be interested in adding to it.

Jakob Bloch, CEO of recruitment firm Commodity Jobs, said a lot of banks’ traders are interested in joining commodities trading houses and commodities producers, where bonuses are often paid in cash instead of deferred stock.

One ex-bank commodities trader who now works for an agricultural company told us the pay isn’t all that outside banking, however. “Salaries are much lower here and bonuses are often 20% maximum, so I’m being paid less but my job is easier.”

He pointed to big hiring at major commodity trading houses. Earlier this year, for example, Vitol launched a new grain trading desk and hired at least five traders from Canadian company Viterra.

Comments (2)

Comments
  1. “Salaries are much lower here and bonuses are often 20% maximum, so I’m being paid less but my job is easier”…

    Who does he work for? Certainly not one of the big independent trading houses…. I think you’ll find that even the middle office / back office staff get as much as a 20% bonus at the likes of Trafigura, Vitol, Gunvor, Glencore etc. etc.

  2. Probably a more industrial corporate company, likely in a treasury and purchasing department, which would totally make sense. Traders at Kraft or Unilever for example won’t have the same kind of bonus than in IB, will they?

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