French investment bank Natixis to shut commodities brokerage
FRENCH bank Natixis yesterday said it plans to close its commodities brokerage division, as one of the oldest ringdealing members of the London Metal Exchange becomes the latest victim of the European debt crisis.
The bank decided to wind up the brokerage activities of Natixis Commodities Markets (NCM), which offers derivatives on a range of metals, fuels and commodities as part of its investment bank adaptation plan, the bank said in its earnings statement yesterday.
Over-the-counter activities will continue in cooperation with structured finance operations, which also offers commodities trade finance, it said in the statement.
The future of NCM, which has been in metals broking under several owners for almost 35 years, has been uncertain since management said in January it was considering selling the business.
The bank wanted to scale back its exposure to the capital-intensive commodities business. Henrik Wareborn was hired in September to head up the operation.
The 120-strong team in London was told by management of the decision on Wednesday afternoon. The move will effectively dismantle the ring-dealing team on the London Metal Exchange trading floor and will start the process of liquidating customers’ accounts.