London 12/10/2016 - Natixis is expanding into base metals again under the helm of Peter Barnes - formerly of Deutsche Bank - after reducing activity in the sector over the past four years, sources told Metal Bulletin.
The French bank, which used to be a market-making firm of the London Metal Exchange, intends to revive those efforts and become a big player in metals again, Metal Bulletin understands.
The plan is to start with exchange-traded base metals before expanding into other products such as concentrates and alumina.
Peter Barnes, who was managing director of precious and base metals trading at Deutsche Bank for five years until late last year, is driving the expansion at Natixis.
The bank is currently building a platform that in three-to-six months will allow a team of up to 20 in Paris and London to offer physical base metals financing and structured products as well as risk management and hedging to clients, a well-informed source explained.
Natixis has access to cheap money as an A-rated bank, which will help the financing business, the source added.
Natixis sold its commodities arm, Natixis Commodity Market (NCM), to GF Futures Hong Kong, a division of GF Securities, for $36.14 million in August 2013.
NCM, formerly known as Sogemin Metals, surprised the market when it pulled off the LME trading floor in 2012 to become an Associate Broker Clearing Member (category two) after failing to find a buyer.
(Editing by Mark Shaw)