Jefferies Bache Ltd, which has upgraded its LME membership to full Ring Dealer Member (RDM) from Associate Broker Clearer Member (ABCM), will start trading and clearing in its new role from September 5, the exchange said on Wednesday.
The firm, a US investment bank, will take RDM numbers back up to 12 – it will replace Natixis, which exited the open-outcry floor at the end of July, due to its French parent downgrading commodity operations.
Sources said that several former members of Natixis’ floor team will form the bulk of the RDM unit of Jefferies Bache, which has expanded aggressively in recent months, making key hires in the US and Asia.
Natixis has become an ABCM – although it has ceased broking, it will still carry out metal warrant financing. Access to clearing is needed for this.