Tradition Financial Services Ltd., a broker of over-the-counter physical and derivative products, hired four people to start an agricultural commodities desk.
The London-based company, known as TFS, expects to start broking deals in soft commodities such as sugar, cocoa and coffee, as well as grains in September, said Mike Anderson, a managing director of TFS running the energy and commodities desks. Two brokers have joined the company, while another will start in July and the last one in August, he said.
“We do oil, power, gas, coal, emissions and more recently biofuels have become more prevalent,” Anderson said in a telephone interview from London today. “It’s an obvious next step for us to be involved in softs because of the crossover with biofuels. Sugar goes into ethanol and ethanol is a component of gasoline, particularly in the United States.”
TFS will start broking agricultural commodities with four people and depending on customers’ needs, the company may look at hiring more people toward the end of the year, according to Anderson.
Soft commodities and grains are also important to the company because they are part of the portfolios of many of TFS’s clients, he said, adding their clients include several hedge funds and big trading houses.
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