Knowledge Problem

Market Share Math

Michael Giberson

So just as Lynne urges you to follow the prodigious output of theWSJ’s Energy Roundup blog, they reveal that they, too, are human by rushing out some less-than-carefully worked out language about market shares among traders in the over-the-counter energy derivatives markets:

According to a recent survey by research firm Greenwich Associates, Goldman is the largest energy-trading firm in the world when it comes to companies trading over-the-counter energy derivatives. Goldman controls 40% of the market, followed by Morgan Stanley, which has a 35% market share, and Barclays Capital, which was used by 27% of the companies surveyed by Greenwich.

So, by a little mental math, it looks like the top three firms have locked up 102% of the market. No wonder the smaller firms have to work so hard.