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Tuesday, December 16, 2014

Jefferies in talks to sell futures business, (NYSE: LUK)

Investment bank Jefferies Group LLC, owned by Leucadia National Corp, said it was in talks to sell its commodities and financial derivatives brokerage, which has been struggling with high costs and falling fees.Jefferies, which also reported a fourth-quarter loss, is the latest bank to retreat from the commodities futures market as stricter regulation increases costs and intense competition and a decline in fees squeeze profit margins.Brokers, which make money clearing and executing trades for clients ranging from commercial hedgers to hedge funds, have also been hit by the rise of electronic trading, which allows customers to execute trades on their own screens.Jefferies' move reverses a push into commodities that started with its $430 million purchase of the more than 130-year old business, formerly known as Prudential Bache, in 2011.

Leucadia National Corporation is a diversified holding company. Shares of LUK fell by 0.6% or $-0.13/share to $21.44. In the past year, the shares have traded as low as $21.13 and as high as $28.72. On average, 2026830 shares of LUK exchange hands on a given day and today's volume is recorded at 2097423.