There was a shift in market dynamics for commodity and energy derivatives desks in 2010. Markets saw little of the extreme volatility that had characterised recent years, with hedging activity by producers and end-users falling back as a result. Overall, trading activity is estimated by dealers to have dropped by about 30% from 2009.
Barclays Capital has not been immune to this. In its third-quarter results, the bank reported a drop in revenue of 37% for its fixed-income, currency and commoditie