Barclays saw a surge in emerging-markets trading last quarter, with revenue climbing to about £500 million amid volatility spurred by Russia’s invasion in Ukraine.
The surge indicates Barclays traders may have navigated a quarter that saw banks’ trading desks benefiting from higher activity but also facing potential blowups amid fast-moving markets. The London-based lender made £1.2 billion in revenue from overall fixed-income, currency and commodities trading in the first three months of 2021, and industry analysts say emerging markets typically account for less than a quarter of FICC revenue at major banks.
Markets were roiled during the period by the Ukraine war as well as global efforts to temper inflation by hiking interest rates. The cost of insuring Russia’s debt against default for five years rose 1,100 per cent in the quarter, with prices whipsawing daily, according to data compiled by Bloomberg.