DBS Starts Commodity Trading on LME
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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.
Questions & Answers
Q.What specifically does DBS's Category 4 LME membership allow it to do?
What specifically does DBS's Category 4 LME membership allow it to do?
A Category 4 LME membership allows DBS to trade and issue client contracts for commodities. However, it does not provide the bank with any clearing abilities on the exchange.
Q.Which corporate clients stand to benefit from DBS's new LME membership?
Which corporate clients stand to benefit from DBS's new LME membership?
Corporate clients of DBS in Singapore, China, India, Indonesia, Korea, and Hong Kong will gain access to a wider range of hedging and financial solutions for their metal businesses.
Q.What is an additional benefit for DBS clients in the metals and mining sector due to this LME membership?
What is an additional benefit for DBS clients in the metals and mining sector due to this LME membership?
Clients in the metals and mining sector will now have the option to access sustainably-produced metal. This addresses growing expectations regarding the industry's sustainability standards.
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