HSBC has resigned its membership in the London Metal Exchange, the LME said on Friday, after the bank decided to close its industrial metals business two years ago.
The exchange, the world’s oldest and largest market for industrial metals, said in a notice that HSBC Bank plc had resigned from both the exchange and its clearing house effective on Friday.
The bank was a small player in industrial metals, but told Reuters in July 2020 that returns were too low to justify continuing the business.
“We remain focused on growing our leading position in precious metals,” a HSBC spokesperson said on Friday.
HSBC was a Category 2 LME member, which allows trading for their own account and on behalf of clients using the LME electronic system, but not in the open-outcry ring.
The LME is owned by Hong Kong Exchanges and Clearing Ltd.
(By Eric Onstad; Editing by Louise Heavens)