JP Morgan Chase & Co has no plans to sell its metals futures brokerage and remains committed to this part of its commodities business, which includes a London Metal Exchange ring-dealing team.
“JP Morgan’s metals futures brokerage is not up for sale and we continue to be committed to that business,” a spokesperson said.
The US bank was responding to a Wednesday January 8 media report citing a source saying JP Morgan was to sell its London Metal Exchange futures brokerage business.
The bank is a category one ring dealing member of the LME.
It also has no plans to exit its traditional banking activities in the commodity markets, including financial derivatives and the vaulting and trading of precious metals.
But it is continuing the process to sell or enter into a strategic partnership for its physical commodities businesses, including its remaining holdings of commodities assets and its physical trading operations.
The bank said in July that following an internal review of the businesses, which include its Henry Bath metals warehousing business, it planned to “explore a number of options” related to its physical commodities division.
It also said in July that it was “fully committed” to its traditional commodities banking activities.
While the appetites of several US and European banks for physical commodities is waning amid increasing regulatory scrutiny, a number of other banks have returned to the sector or are looking to build a business from scratch.