By Clarence Leong
DBS Group Holdings Ltd. has begun trading commodities on the London Metals Exchange, the world's major trading platform for industrial metals.
The Singaporean bank is currently one of four Category 4 members on the LME, which allows it to trade and issue client contracts but doesn't give it clearing abilities. It is also the first bank in Asia to be issued a LME membership registered outside of London, it said Monday.
DBS's corporate clients across Asia can tap the LME's extensive network of warehouses to hedge their metal trades in preferred markets, the bank said.
Metal prices have leapt ahead in recent months thanks the global economic recovery from the coronavirus pandemic and substantial fiscal stimulus from governments. A global decarbonization drive and investments in green technology also caused a boom in demand for metals like copper.
"The LME membership will provide our clients in the metals and mining space with the option to access sustainably-produced metal," said Tan Su Shan, DBS' Group Head of Institutional Banking. "Metals are an essential enabler to achieve a sustainable future."
The LME is owned by Hong Kong Exchanges & Clearing Ltd.
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(END) Dow Jones Newswires