British banking major Barclays, is gearing up to sell its commodities trading business to concentrate on the profitable investment banking operations, joining other rivals in the face of increasing regulatory scrutiny and falling profits.
The bank said that it would quit most of its metals, energy and agricultural trading while continuing to trade in precious metals, some oil and gas instruments and index products.
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The lender aims to concentrate on electronic trading with the reduced size of business.
In a statement cited in The Wall Street Journal, Barclays said: "This decision is in line with Barclays’s stated objective to actively evaluate and manage our businesses, ensuring they meet strict economic and strategic criteria within the new regulatory environment.
"The refocused business will provide a simplified financial flow platform for clients, with an emphasis on efficient electronic execution."
It is being rumoured in industry circles that the move is in response to the pressure that Barclays chief executive Antony Jenkins is facing from investors to boost returns after a disappointing 2013.
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By GlobalDataBarclays is also facing heat from the new tight regulations which have come in place now, with rivals such as JP Morgan also deciding to pull back from the commodities business.
