Increasing regulatory requirements and legislation, changing client needs as well as high technology costs prompted ABN AMRO to conduct a thorough strategic review of Markets, part of Merchant Banking, as previously announced. In scope were the Markets activities excluding Clearing.
The outcome of the review is that the product and service offering of Markets will be more focused and purely client led. The product offering will consist of foreign exchange, rates & commodity derivatives, securities financing, credit bonds and equity brokerage & research. Going forward Markets will no longer offer equity derivatives products and own structured products.
Implications for geographic presence of Markets
This shift in focus will have implications for the geographic presence of Markets. As a result of the focus, the Markets activities in Asia will become subscale and will be closed. In the Netherlands, Markets will further expand the online product offering to commercial clients and the five Regional Treasury Desks (RTD) in the Netherlands will be combined into one centralised department. In Europe, we will explicitly focus and grow the service proposition to Energy, Commodity and Transportation (ECT) clients and Financial Institutions clients in particular. Markets will remain in the US offering products to ECT clients, Financial Institutions and Dutch clients active in the United States.
Focus on client led organisation
Our clients view Markets‘ products an integral part of their relationship with the bank. With these changes we are confident that we will continue to offer our clients the best possible product and service offering and at the same time lower capital consumption. Markets will be supporting the objective of a focused client led organisation. At the year-end 2013 Markets (excluding Clearing) had approximately 300 FTEs and revenues of around EUR 260 million.