Newedge metals woes deepen as senior brokers exit
By Josephine Mason
NEW YORK (Reuters) - Three senior metals dealers at Newedge Group have resigned following the departure of the global metals chief, dealing a blow to the commodities business of one of the world's largest brokers.
Joel Spier, head of metals for the Americas, and John Peiser, a senior director, in New York left the company on Tuesday, a Newedge official told Reuters on Wednesday, just days after the surprise resignation of global metals chief Mike Frawley.
In London, where the broker is one of dozen ring dealing member of the London Metal Exchange, Steve Pettitt, head of Europe, Middle East and Africa, handed in his resignation, although he has agreed to work out his notice and was still working on Tuesday, according to industry sources.
A spokeswoman for Newedge, a joint venture created in 2008 between two of France's largest banks, Credit Agricole CIB CRAGO.UL and Societe Generale (SOGN.PA: Quote), had no comment on the resignations.
The reasons for their departure and the impact on Newedge's metals strategy remained unclear on Wednesday. The spokeswoman said it was business as usual.
John Fay, global head of fixed income, currencies and commodities (FICC) with a background in electronic trading, assumed Frawley's responsibilities last week.
Newedge has an estimated 12.1 percent market share for execution and clearing on global-listed derivatives exchanges, according to its website.
Even so, losing four senior members of the metals team has come at an already tough time for the broker's co-owners as French banks try to cut their exposure to dollar financing, reduce debt and boost their capital ratios amid concern about the euro-zone debt crisis. Continued...