Fixed Income, Currencies and Commodities

Group contribution to profit based on internal management accounts before tax and profit share Full year to 31 March 2013: 23 per cent Full year to 31 March 2012: 26 per cent

Staff: 946 (at 31 March 2013)

Activities: Fixed Income, Currencies and Commodities (FICC) provides a variety of trading, risk management, sales, structuring, financing, market analysis and strategy services across the globe with an underlying specialisation in interest rate, commodity or foreign exchange-related institutional trading, marketing, lending, clearing or platform provision

Staff locations: Australia, Brazil, Canada, China, Hong Kong, India, Indonesia, Japan, Singapore, South Korea, Switzerland, the UAE, the UK and the US

Fixed Income, Currencies and Commodities (FICC) comprises the following divisions:

Credit Trading

Credit Trading operates primarily in the United States via its team based in New York but with an additional presence in Sydney. Credit Trading facilitates client transactions with institutional investors and makes markets in corporate debt securities, credit default swaps, syndicated bank loans, collateralised debt obligations, asset-backed and mortgage-backed securities and derivatives of these products. Credit Trading focuses on the high-yield and distressed sectors and to complement this focus, its US activities include commercial mortgage finance and commercial mortgage backed securities. Other industry specialties include healthcare, consumer/retail, energy/utilities, gaming/leisure, commodities/metals, infrastructure/transportation and media/telecommunications.

Energy Markets

Energy Markets operates in London, Geneva, Sydney, Melbourne, Houston, Calgary, New York, Singapore, Jakarta, Seoul and Tokyo providing products and solutions to a broad customer base across the energy sector. Traded energy products include natural gas, liquefied natural gas (LNG), natural gas liquids (NGLs), power, crude oil, coal, refined products and carbon emissions. In addition, the division is active across all physical energy products: natural gas, power, LNG, oil, NGLs and coal. Energy Markets also provides storage and transportation services, and commodities based financing. The division provides services to clients and market participants including producers, refiners, large industrials, airlines, utilities, shipping companies, wholesale marketers and aggregators. Macquarie Energy is ranked the number four physical gas marketer in North America¹.

Fixed Income and Currencies

Fixed Income and Currencies, with staff based in Sydney, Melbourne, Singapore, Tokyo, Hong Kong, London and New York, provides currencies and fixed income trading and hedging services to a range of corporate and institutional clients globally. The division provides 24-hour price making in all major currency pairs as well as offering structured solutions and risk management hedging services. Additionally, it offers retail and wholesale currency delivery and technology platforms. In fixed income markets, Fixed Income and Currencies arranges and places primary debt for clients and provides secondary market liquidity in Australian government, semi-government fixed income and inflation linked bond markets, as well as issuance activities and interest rate risk management services via structured solutions and derivative based products.

Futures

Futures provides a full range of execution and clearing services to corporate and institutional clients, providing access to most major exchanges globally. Futures also provides futures services to other divisions within Fixed Income, Currencies and Commodities and other affiliates within Macquarie Group. Futures offers trade execution (electronic and via desk based brokers) and clearing services and makes extensive use of proprietary technology to provide clients with customised solutions for global market access, order management, consolidated clearing and enhanced customer specific reporting. The division is a leading provider of these services in the Australian market and a growing participant in North America, Europe and Asia. Futures operates from offices in Sydney, Melbourne, Brisbane, London, New York, Chicago, Montreal, Hong Kong, Singapore and Mumbai. Macquarie holds various classes of membership to ASX, HKEX, CME Group, ICE, MX, LIFFE, NOS and ERX.

Metals & Agriculture Sales and Trading

Metals & Agriculture Sales and Trading has staff in London, Geneva, New York, Des Moines, Sao Paulo, Ribeirao Preto, Singapore, Hong Kong, Tokyo and Sydney providing corporate and institutional clients with trading, risk management and selected physical supply solutions. Metals related risk management trading and hedging services are provided via 24-hour trading and price-making services in industrial metals, bulk metals and precious metals. The agricultural offering includes sugar, coffee, cocoa, grains and oilseeds, cotton, fertilizer, meat and livestock, dairy, pulp and paper, palm oil, rubber and ethanol. Dry freight services include bespoke risk management solutions to ship owners, charterers and operators across all major vessel sizes. The division also includes a Commodity Investor Products business which offers commodity-based index products to institutional investors globally. Macquarie is an Associate Broker Clearing Member of the London Metal Exchange and a Clearing Member of the London Clearing House.

Metals and Energy Capital

Metals and Energy Capital operates in Sydney, Perth, London, Houston, New York, Calgary, Toronto and Vancouver providing debt financing, equity capital and price risk management to producers across the metals, industrial minerals, bulk commodities and upstream oil and gas sectors globally. It also makes markets in precious metals. Metals and Energy Capital targets opportunities in the $US5 million to $US150 million range and provides a wide range of equity and debt facilities at the corporate and project level. The division includes in-house industry experts such as geologists, petroleum and mining engineers. Macquarie is an Ordinary Member of the London Bullion Market Association.

Central

Central fosters and develops various non-division specific, early stage or cross-divisional initiatives as well as housing various FICC-wide services including:

• Structured Commodity Finance which offers services across agriculture, energy and metals including revolving, working capital facilities secured by exchange traded commodities. With staff in New York and London, it also provides repurchase-style physical transactions as well as mezzanine debt, structured facilities and transactions in conjunction with other FICC divisions;
• Cross-Product Sales teams covering Brazil and Latin America, Eastern Europe and the Commonwealth of Independent States, the Middle East, North Africa and Korea. The teams specialise in a particular country/region and support all FICC product lines in a specific geography;
• Structured Global Markets covering Cross-Border Activity, Local Market Structuring, Repo Financing and Trade Solutions;
• Private & Structured Finance in Asia and Australia;
• new jurisdictions and branch initiatives; and
• joint ventures and alliances.

¹ Platts Q4 2012