Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Euronext Paris  >  Société Générale    GLE   FR0000130809

Real-time Quote. Real-time Tradegate - 03/29 06:58:03 pm
47.133 EUR   -0.93%
03/28 French shares drop 0.15 %
03/26 SOCIETE GENERAL : General Ghana launches loans Promotion
03/22 SOCIETE GENERAL : SocGen says to raise spending on French retail ban..
News SummaryMost relevantAll newsSector newsTweets 

Natixis plans to shut commodities brokerage unit

share with twitter share with LinkedIn share with facebook
share via e-mail
05/10/2012 | 04:40pm CEST

French bank Natixis (>> NATIXIS) said it plans to close its commodities brokerage division, as one of the oldest ring-dealing members of the London Metal Exchange becomes the latest victim of the European debt crisis.

French bank Natixis (>> NATIXIS) said it plans to close its commodities brokerage division, as one of the oldest ring-dealing members of the London Metal Exchange becomes the latest victim of the European debt crisis.

The bank decided to wind up the brokerage activities of Natixis Commodities Markets (NCM), which offers derivatives on a range of metals, fuels and commodities, the bank said.

Over-the-counter activities will continue and operate in cooperation with the bank's structured finance operations, which also offer, among other related activities, commodities trade finance.

"This is part of our reduction plan because it is a business which consumes a lot of liquidity," Natixis CEO Laurent Mignon told analysts in a conference call on Thursday.

"We consider that we really don't have the critical size in this business," he added.

The future of NCM, which has been in metals broking under several owners for almost 35 years, had been uncertain since management said in January it was considering selling the unit.

The bank wanted to scale back its exposure to the capital-intensive commodities business. Henrik Wareborn was hired in September to head up the operation.

The 120-strong team in London was told by management of the decision to wind down the brokerage on Wednesday afternoon, a trader who had spoken to an NCM trader told Reuters.

"They were told it's over. The business will be liquidated in an orderly fashion," the trade source said.

Natixis LME traders have been given three-months' termination notice, another ring-dealing trader said.

The move will effectively dismantle the ring-dealing team on the London Metal Exchange trading floor and will start the process of liquidating customers' accounts.

Closing accounts is expected to take until the end of the year, the source said.

Natixis may keep its LME membership and downgrade it to a lower category that does not allow ring-dealing activities, a Natixis spokesman said.

Natixis is not the only French bank to adjust its business model.

In the past six months, Credit Agricole (>> CREDIT AGRICOLE), BNP Paribas <BNPPS.UL> and Societe Generale (>> SOCIETE GENERALE) have all taken steps to cut exposure to dollar financing, reduce debt and boost capital ratios amid concern about the euro-zone debt crisis.

The bank may be hoping for rich proceeds if it decides to sell its 250,000 Category A shares in the LME, which are worth $17 million based on recent sales, but it may also keep them as an investment, market sources said.

The LME, the world's last member-owned exchange, is considering bids from four of the world's major exchanges, which are said to be in fierce competition to buy the 135-year old entity.


Removing NCM will cut the number of brokers, dealers and banks participating in open-outcry trading in the LME ring to 11.

It will be the first closure of a Category I seat for several years, with most memberships typically changing hands as a result of a takeover or a merger.

The newest member, INTL FCStone Inc (>> INTL Fcstone Inc), bought its seat from the liquidator of collapsed MF Global and JPMorgan Chase secured its membership as part of its acquisition of the RBS Sempra commodities business in 2010.

NCM's roots go back more than 30 years when it was owned by Sogemin Metals, the London brokerage unit of the Union Miniere Group (now Umicore SA (>> UMICORE (D))), which mined for copper in what is now the Democratic Republic of Congo more than a century ago.

Union Miniere only broke ties with Sogemin in 2000 when it sold the company to Natexis Banques Populaires, a unit of the Banques Populaires group. The business was renamed Natixis Commodity Markets when it merged with IXIS in 2006.

The NCM ring team is relatively new by LME standards - some key members, including Stuart Neville, left to join ED&F Man in 2007.

But many of the back office staff, including account executives, have been with the company since the Sogemin days. ED&F also hired Udo Klein and Aaron Begner in New York from the broker at the end of March.

Some high-profile senior members of the metals industry have worked for the broker in its various guises, including LME chief executive Martin Abbott and Triland chief Martin Pratt.

(Additional reporting by Eric Onstad in London, Editing by Robert Birsel, Veronica Brown and Helen Massy-Beresford)

By Josephine Mason and Sybille de La Hamaide

share with twitter share with LinkedIn share with facebook
share via e-mail
03/28 French shares drop 0.15 %
03/26 SOCIETE GENERALE GHANA : General Ghana launches loans Promotion
03/22 SOCIETE GENERALE : SocGen says to raise spending on French retail bank
03/22 SOCIETE GENERALE : Hear from the charity
03/22 SOCIETE GENERALE : City Giving Day brought us together
03/21 Lebanese Finance Ministry mandates banks for Eurobond issue
03/20 Lebanon sets final yield for triple-tranche US dollar deal
03/16 SOCIETE GENERALE : 16/03/2017 Societe Generale has signed a new three-year agree..
03/16 SOCIETE GENERALE : Has Signed New Three-Year Agreement to Promote Employment, Pr..
03/15 SOCIETE GENERALE : 14/03/2017 Societe Generale Global Transaction Banking streng..
More news
Sector news : Banks - NEC
04:30p TSX slips as industrials offset gains in energy
03:35pDJCHINA CONSTRUCTION BANK : 2016 Net Profit Up 1.45% on Year to CNY231.46 Billion
01:02p European shares inch higher as Brexit divorce process to begin
12:53pDJAGRICULTURAL BANK OF CHINA : Says It Extended $35 Million Loan to Huishan Dairy
More sector news : Banks - NEC
News from SeekingAlpha
03/01 Barclays Discount To Tangible Net Asset Value Is Warranted!
02/16 EU Second-Tier Banks Could Get Yield Curve Leg-Up
02/15 A Look At Bank And Broker Credit Default Swap Prices
02/09 Societe Generale ADR reports Q4 results
02/07 Marine Le Pen And French/European Banks
Financials (€)
Sales 2017 25 280 M
EBIT 2017 7 849 M
Net income 2017 3 747 M
Debt 2017 -
Yield 2017 4,65%
P/E ratio 2017 10,25
P/E ratio 2018 9,34
Capi. / Sales 2017 1,52x
Capi. / Sales 2018 1,49x
Capitalization 38 427 M
More Financials
Duration : Period :
Société Générale Technical Analysis Chart | GLE | FR0000130809 | 4-Traders
Full-screen chart
Technical analysis trends SOCIÉTÉ GÉNÉRALE
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus OUTPERFORM
Number of Analysts 26
Average target price 47,9 €
Spread / Average Target 0,69%
Consensus details
EPS Revisions
More Estimates Revisions
Frédéric Oudéa Chief Executive Officer & Director
Lorenzo Bini Smaghi Chairman
Philippe Heim Group Chief Financial Officer
Alain Benoist Head-Processes & Information Systems
Carlos Goncalves Head-Global Technology Services
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
JPMORGAN CHASE & CO.2.68%316 476
WELLS FARGO & CO1.54%280 017
More Results