Bloomberg

(Bloomberg) -- Goldman Sachs Group Inc. has hired Jeremy Taylor, head of North American gas and power trading at Mercuria Energy Group, according to a person familiar with the matter.

Houston-based Taylor will relocate to New York to join Goldman Sachs’s commodity unit, known as J. Aron, the person said, asking not to be identified because the move hasn’t been publicly disclosed. Taylor is expected to be named a partner at the New York-based bank, the person said.

Taylor’s departure is a loss for Geneva-based Mercuria, which has expanded its power and gas trading business following the acquisition of the bulk of JPMorgan Chase & Co.’s physical commodities unit for $800 million in 2014. Taylor left Merrill Lynch Commodities in 2009 to join Mercuria, whose founders Marco Dunand and Daniel Jaeggi, as well as global head of trading Magid Shenouda, are all former Goldman Sachs employees.

Goldman is expanding gas, power and other trading at its commodity unit as other banks pull back amid increased regulatory scrutiny and a downturn in the sector. In addition to JPMorgan, Deutsche Bank AG and Barclays Plc have scaled-back commodity trading as regulators consider new rules for banks handling physical raw materials such as metals and oil. The U.S. Federal Reserve has warned that accidents involving commodities could potentially pose a systematic risk to banks.

Mercuria Partnership

Taylor declined to comment when reached by telephone in Houston. Goldman Sachs also declined to comment.

Mercuria has peppered its top ranks with traders and executives from Wall Street investment banks and has differentiated itself from larger rivals such as Vitol Group and Trafigura Group by trading heavily in futures, options and other derivatives linked to commodities. Taking on a role traditionally held by big banks, Mercuria said this month it was entering a partnership with Nasdaq Inc. to offer hedge funds and other financial players access to European physical gas and power markets.

Mercuria last month hired Michael Kennedy, a former vice-president of natural gas trading at Goldman Sachs.

To contact the reporter on this story: Andy Hoffman in Geneva at ahoffman31@bloomberg.net. To contact the editors responsible for this story: James Herron at jherron9@bloomberg.net, Dylan Griffiths, Will Kennedy

©2016 Bloomberg L.P.

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