Marex Spectron Looks to Capture Commodities Business from Rival Groups

Marex Spectron Group Ltd, a global commodities brokerage, is looking to capture a host of new business trickling in from banks that have largely cut their exposure and supply to commodities trading in general.

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This comes at a critical time for commodities, namely precious metals that have seen an influx in Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term in recent months ahead of the Federal Reserve decision to alter its interest rates. The group has a core business in energy, metals, and agricultural products, and currently boasts a staff of 600 people globally.

As opposed to many other brokerage groups or venues that have faced dire straits recently, Marex recently reported its operating profit of $23 million, which was reflective of 53% jump YoY.

The company's privately owned competitors include Sucden Financial Ltd and Amalgamated Metal Trading Ltd. Marex has offices in London, New York and Hong Kong. This week, the company reported 2015 operating profit of $23 million, a 53 percent jump from a year earlier.

Marex Spectron’s Chief Executive Ian Lowitt reiterated this stance, as he hoped the group would be the beneficiary of this incoming business. Many leading banks in the industry such as Deutsche Bank, Standard Chartered, and Barclays, among others, have all incurred diving profit margins, each announcing a widely revamped structure to their businesses to help more on profitable avenues – this has left commodities trading largely scaled back.

Marex Spectron did not give any specifics as to any potential or specific customers, rather it portended an increase in overall volumes at the brokerage. According to Mr. Lowitt, in an interview with Reuters: "Some of the really big-name clients who previously would just deal with banks are now calling us and engaging with us.”

"As banks and other financial players pull away, talent is coming onto the market. That puts us in a position that we can hire some people that previously probably wouldn't have come to firms like ours," noted Mr. Lowitt.