DBS Starts Commodity Trading on LME

The bank is the first in Asia to hold a London Metal Exchange (LME) trading membership outside of London.

DBS is 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.

The LME membership paves the way for the bank’s corporate clients in Singapore, China, India, Indonesia, Korea, and Hong Kong to have access to a broader suite of hedging and financial solutions to support the diverse needs of metal businesses, DBS said in an announcement this week.

It will also provide the bank’s clients in the metals and mining space with the option to access sustainably-produced metal, Tan Su Shan, DBS group head of institutional banking, said.

Metals are an essential enabler to achieve a sustainable future, and as global demand for the commodity continues to grow exponentially, so will expectations on the industry’s sustainability standards, Tan said.

The 144-year-old bourse is the global hub for metals trading and was acquired by Hong Kong Exchanges and Clearing in 2012.