Singapore bank DBS said that it has commenced commodity trading on the London Metal Exchange (LME). This is after it became the first bank in Asia to be issued bourse membership registered outside London, as metals prices surge on global economic recovery.
DBS has become one of four current LME Category 4 members. This allows the bank to trade for its own account. And that too on behalf of clients but without a clearing ability. The metals prices had climbed up. And this reflects abundant market liquidity, speculative buying and robust demand prospects in the next decade. The booming renewable energy and electric vehicle sectors, both emerging as key metals-consuming sectors.
Tan Su Shan, DBS’ Group Head of Institutional Banking said that the 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. The 144-year-old LME is owned by Hong Kong Exchanges and Clearing Ltd., And this is the world’s oldest and biggest marketplace for industrial metals and Europe’s last open trading floor.