Bloomberg News

Natixis May Remain LME Member After Closing Commodity Brokerage

May 10, 2012

Natixis Commodity Markets Ltd., one of 12 companies allowed to trade on the floor of the London Metal Exchange, may remain a member of the bourse after the bank’s decision to close the commodity brokerage business.

Natixis SA Chief Executive Officer Laurent Mignon said yesterday the French bank is ending the London-based commodities brokerage business. Most of that business is industrial metals, with the remainder in agricultural commodities and energy, said Pierre-Henri Denain, senior country manager for Natixis in U.K.

The Paris-based bank plans to stop its “pure brokerage” business while keeping over-the-counter activities, Mignon said yesterday. The process of exiting the brokerage business may run until the end of this year, Denain said.

Natixis will remain a category 1 member of the LME in “the immediate future but it’s now working with customers to decide when it will cease offering ring-dealing services,” Denain said. “The bank may then decide whether or not to continue with a different level of LME membership to support its OTC sales and trading business.”

There are seven different categories of LME membership. Category 1 and 2 members provide access to the market and can clear trades, according to the exchange website. Only category 1 members have access to the ring. The exchange also has electronic and telephone trading.

Natixis will announce next week the restructuring of its over-the-counter commodity sales and trading business, Denain said.

To contact the reporter on this story: Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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