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Barclays further downgrades London Metal Exchange membership
March 17, 2017 / 3:28 PM / 6 months ago

Barclays further downgrades London Metal Exchange membership

A Barclays sign is seen outside a branch of the bank in London, Britain, February 23, 2017. REUTERS/Stefan Wermuth

LONDON (Reuters) - Barclays Bank (BARC.L) is sharply downgrading its membership on the London Metal Exchange, the LME said on Friday, after the bank cut back its commodity business.

Barclays has steadily withdrawn from commodities in recent years, joining other banks in retreating from the sector as profits declined and regulators boosted requirements for banks to hold more capital.

From Monday, Barclays will move to category four membership from category two at the LME, the world’s oldest and largest market for industrial metals trading, an LME members’ notice said.

It will no longer be a clearing member and will begin using Societe Generale International to register contracts, the notice said.

In 2012, Barclays withdrew from the top tier, category one LME membership, stopping open outcry trading as it started trimming exposure to base metals.

Reporting by Eric Onstad; Editing by Susan Fenton

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