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Oct 25 (Reuters) – Commodities broker Marex will offer clients access to CME Group’s CME.O industrial metals contracts, beginning with aluminium, the two companies said on Tuesday.
The tie-up comes as CME expands its metals business and the London Metal Exchange (LME), the biggest trade hub, faces dissatisfaction from some traders after turmoil in its nickel contract in March.
Jin Chang, CME’s head of metals, said trading of its aluminium contract had tripled since the first quarter of the year and the partnership with Marex would bring new clients.
Privately owned Marex is one of eight dealers in the LME’s open-outcry trading ring and has grown rapidlyin recent years, including by buying rival firm ED&F Man Capital Markets.
“We are leveraging our position as number one provider of liquidity on the LME and our status there to make sure we can cross-pollinate our clients into these new products,” said Marex President Simon van den Born.
He said some clients would prefer the simple monthly structure of CME futures contracts to the LME.
Chang said there had been an “incredible amount” of inquiries from the market about CME’s metals contracts since March.
Reuters reported in May that CME was considering a nickel contract. Chang did not say whether or when one would be launched.
ANALYSIS-Global metals volumes slide on recession fears, volatile marketsID:nL8N3024C6
(Reporting by Peter Hobson Editing by David Goodman )
((Peter.hobson@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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