Standard Chartered Bank is strengthening its global rates and foreign exchange business with the creation of commodity derivatives desks in Singapore and London.
The bank has hired a team from Commerzbank headed by Jeremy East, who has been appointed head of metals, global commodity derivatives, rates and foreign exchange, reporting to Will Shropshire, head of global commodity derivatives. East is based in London.
With over 25 years of trading and marketing experience in metals and energy, East is also an international advisor to the Shanghai Metals Exchange
Standard Chartered says Singapore, an established regional hub for commodity derivatives trading in Asia-Pacific, is a natural choice as the site for the desk. Local regulators have been developing the market with legislative reforms, joint ventures with international exchanges such as Nymex, and tax incentives for investors.
The team will cover precious metals, base metals, energy and soft commodities, enabling the business to provide commodity trading services as well as a fully integrated service across multiple asset classes including FX, interest rate, debt, credit and commodities.
The product offering will range from vanilla swaps to cross-market derivatives services.
Shropshire says the bank has a history in commodity trading in Asia and India dating back to the 1850s. “Today, across our network, we have clients who are producing, exporting, importing and consuming oil and metals as well as traditional agricultural commodities. A commodity derivatives capability allows us to help manage price risk for our corporate clients exposed to these volatile markets.
“In addition, over the past few years, investors have seen the portfolio benefits of commodities as an asset class. This is now a multi-billion dollar market and our commodity derivatives capability also allows us to provide commodity price exposure to our investor clients.”