Singapore bank DBS starts trading on London Metal Exchange
June 21 (Reuters) - Singapore bank DBS said on Monday it has commenced commodity trading on the London Metal Exchange (LME), as metals prices surge on global economic recovery, after becoming the first bank in Asia to be issued bourse membership registered outside London.
DBS has become one of four current LME Category 4 members, which allows the bank to trade for its own account and on behalf of clients but without a clearing ability.
The climb in metals prices reflects abundant market liquidity, speculative buying and robust demand prospects in the next decade from the booming renewable energy and electric vehicle sectors, both emerging as key metals-consuming sectors.
"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," said Tan Su Shan, DBS' Group Head of Institutional Banking.
The 144-year-old LME, owned by Hong Kong Exchanges and Clearing Ltd., is the world's oldest and biggest marketplace for industrial metals and Europe's last open-outcry trading floor. (Reporting by Mai Nguyen in Hanoi; Editing by Kenneth Maxwell)
