These deals would allow banks to remain in the sector despite those tougher requirements
Meyerfeld Lewin, a Premier Trading and Clearing Broker in the Asia Pacific that has trading memberships with major exchanges throughout the world, announced today that is in talks with banks on structured finance deals that combine the commodity merchant’s expertise in handling physical metals and crude oil with banks’ deep financial firepower, executives said.
If agreed, these deals would mark the latest shift in the commodity trading landscape as banks adjust how they operate in commodities markets amid scrutiny from regulators concerned about the risks of physically handling crude and metals.
“We’re in discussion with some banks for deals where we would handle the physical trading and they would provide the financing,” said Michael Kwan, Chief Investment Officer for Meyerfeld Lewin.
“Right now, it’s deal specific, but I’d be surprised if there weren’t more of this kind of thing.”
For Meyerfeld Lewin, it would be a new avenue for revenue aimed to create a diversified physical commodities merchant.
These kinds of deals would also allow banks which have experience financing mining or drilling projects but little expertise in handling physical copper cathode and barrels of crude, to get involved in the potentially lucrative but complex market, Albert Fung, Chief Strategy Officer, said.
“These are banks that have never been in the physical business in a strong way, (and) banks who are in project finance and finding it hard are looking for alternative types of structures,” he said.
Facing smaller margins and stiffer oversight of banks’ involvement in physical commodities, big investment banks have exited or scaled down their businesses.
About Meyerfeld Lewin
Meyerfeld Lewin is a Premier Trading and Clearing Broker in the Asia Pacific Region. Our memberships with major exchanges throughout the world complements our current brokerage capabilities to cater to the diverse trading needs of our clients, regardless of retail, high-net-worth, corporate, institutional, proprietary, hedge funds or high-frequency traders. Meyerfeld Lewin provides trading access for a comprehensive suite of products including Commodities, Futures and Options Bullion, Over-the-counter (OTC) Derivatives and Leveraged Foreign Exchange on all major exchanges in the world. The company also provides professional traders with a trading arcade equipped with state-of-the-art technology, fast, stable and low latency connectivity through leased lines to global exchanges.