London-listed shipbroker Braemar has continued to build its securities operation with the formation of a new natural gas desk.
The 10-strong team will all begin work at the UK company this month.
The new desk will primarily broker European Union gas, UK National Balancing Point (NBP) gas, and LNG, as well as EU carbon allowances (EUAs).
The operation is a natural complement to Braemar’s securities desks, the London shop said.
The company said it is responding to a “clear need in the energy market for assistance navigating volatile rate changes and price fluctuations”.
Braemar’s securities offering has substantially grown revenue and market share in recent years.
The dry cargo freight forward agreement (FFA), coal and wet FFA desks now employ almost 30 people.
The teams contribute more than 12% to Braemar’s total revenue.
“The desk serves a sophisticated and demanding client base, including many of Europe’s leading energy companies as well as banks and hedge funds, and Braemar’s new brokers are well-known in the markets for their long track record of success,” Braemar said.
Clear synergies
The team is led by Marc Jarvis, who becomes head of natural gas at Braemar Securities.
He was previously head of the gas desk at Arraco Global Markets. TradeWinds has discovered that the other nine recruits were also part of Arraco.
The new brokers are in place and will begin trading as soon as regulatory clearances come in.
“We’re excited to be joining Braemar, a company that shares our values and our ambitions,” Jarvis said. “The wet and dry cargo FFA desks have strong reputations and market share.
“We have similar client bases, and there is great opportunity to expand the breadth of activities.”
Chief operating officer Tris Simmonds said: “Providing access to more energy products was always part of our growth strategy, there are clear synergies with our shipping desks and our clients need greater market access.”
“We’ve brought in a talented young team with a good track record. They will provide us with a strong platform to add more products.”
The launch of the natural gas operation follows the successful acquisition and integration of Atlantic Brokers in 2018, and the launch of BraemarScreen.com in 2020, which brought new levels of price transparency to dry freight derivatives, the company said.
There has also been a highly successful two-decade wet FFA partnership with brokerage GFI.
