Deutsche Bank will cease dedicated base metals trading as it scales back its commodities business to focus on financial derivatives and precious metals, the bank announced on Thursday December 5.
It will also stop trading energy, agriculture, base metals and dry bulk on dedicated desks.
The move will have no material impact on the bank’s financial results, it said.
The bank has formed a special commodities group to wind down the businesses it is closing.
Financial derivatives and precious metals, which it described as its “core competencies” will be integrated into the bank’s fixed income and currencies platform to achieve synergies.
“As part of Strategy 2015+, we are actively managing and reviewing our business portfolio. The decision to refocus our commodities business is based on our identification of more attractive ways to deploy our capital and balance sheet resources,” Colin Fan, co-head of corporate banking & securities at Deutsche Bank, said.
“This move responds to industry-wide regulatory change and will also reduce the complexity of our business,” Fan added.
Janie Davies email@example.com Twitter: @janiedavies_mb