Specialised servicing and risk management
We execute and clear a significant proportion of the market activity on the London Metal Exchange (LME), the world's largest non-ferrous metals exchange. We also provide direct access to the CME’s base metal futures and options contracts, on its COMEX exchange. We provide base metals services for producers, consumers, fabricators and traders, brokers, financial institutions, hedge funds and investors in the commodity futures and options markets.
- LME and COMEX execution and clearing
- Direct electronic trading solutions
- Ring trading and commentaries
- Real-time access to spreads and spread quotes
- Expert hedging and risk-management assistance
- LME options liquidity and modelling
- Average pricing
- Warrant trading
Our LME membership
We are one of only eight Category 1 (ring-dealing) members of the London Metal Exchange (LME). It's a unique market which, since 1877, has provided producers and consumers of metal with the ability to hedge their risk against rising or falling prices, as well as acting as a physical market of last resort. While most major markets have migrated fully to electronic trading, Category 1 members at the LME have the right to trade by open outcry. This face-to-face interaction helps manage the complexity of the contracts, providing both liquidity and transparency. Our membership also provides access to the inter-office telephone market between LME members, and direct access to LMEselect, the exchange’s electronic trading system.
The team provides both voice and electronic futures and options execution and clearing for clients trading metals and other industrial commodities, including energy. They also provide services for softs and agriculturals, FX and other financial markets.
The team works for producers, consumers, fabricators and traders, financial institutions and hedge funds, as well as investors in the commodity futures and options markets. Skills and experience range from open-outcry trading floors, commodity brokerages and banks, to operations and support roles. Given the nature and complexity of the markets, particularly the London Metal Exchange (LME), the desk provides additional liquidity, also enhanced by direct access to our ring team.
With the extraordinary industrial and financial market growth in China and surrounding regions, we have expanded our footprint in Asia. Today we have arguably the largest team of Chinese-speaking LME specialists in London, supported by experts at our Hong Kong subsidiary, ensuring round-the-clock support and essential local knowledge. We now serve a wide range of clients with differing needs, from those looking to fix and protect against commodity price risks, to financial institutions looking to access a wide range of financial instruments.
We are one of just eight Category 1 members of the London Metal Exchange (LME) and have had a ring trading team for over 25 years. The membership gives us the right to trade on its unique open-outcry market. Our team is one of the largest and most respected, executing a significant proportion of market activity. Our traders, brokers and clerks spend their morning at our office before heading to the exchange’s modern trading floor in Finsbury Square.
The Fund Services team is made up of seasoned market professionals with decades of expertise that will help you navigate and understand the array of products and services available.
We provide specialist access to over 20 exchanges covering listed financial, equity, commodity and FX futures and options, as well as access to cash fixed income and OTC FX. Offering both electronic (FIX) API and voice-execution solutions, we provide trade assistance and liquidity sourcing for an extensive range of markets through a single access point.
The macroeconomic outlook is deteriorating, and in our view, Europe and the UK are in recession already, and the US will be 6 months behind. Higher interest rates, in conjunction with elevated energy and electricity prices, are squeezing households’ disposable income, and new mortgage rates are considerably higher and are now a fixed cost to the consumer. We expect end-user demand to decline, and this will have an impact across the whole supply-chain; although material availability is poor for metals with bonded and exchange warehouses low in stock, this will lead to a dislocated market and volatile price action in spreads, while the macro impacts the flat price. The 20th Party Congress has ended, and their COVID policy is here to stay. As a result, sentiment in China has declined, and if the output of refined materials rises, this will put further pressure on prices. The Fed has increased the rates by 75bps with 50bps to come, but investors are looking at where they pivot, and any dovish language will cause a selloff in the dollar, giving rise to metals prices. If Chinese demand returns and the dollar weakens, this could present significant volatility and price rises, compounded inflationary pressures.
Our analysts provide an insight into the Electric Vehicle and Battery Material Market. They give an update on how the energy industries in major regions are transitioning towards renewable alternatives, new policies to support EV sales, and a fundamental outlook for Nickel, Cobalt, and Lithium. Supply-chain bottlenecks and strong EV consumption have meant a sharp increase in the prices of materials and chemicals. Will this continue?
Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look into the Norwegian economy as the Norges Bank chose to reduce its pace of tightening. We highlight key trends for the economy which became the largest producer of oil and gas in Europe, following the cut-off from Russia.