Deutsche Bank (NYSE:DB) says it is "significantly scaling back" its commodity trading business amid industry-wide regulatory changes.
The bank said it will exit dedicated trading desks for energy, agriculture, base metals and dry bulk, but reassured Wall Street it will have no "material impact" on financial results.
Continue Reading Below
Colin Fan, co-head of corporate banking and securities at the bank,said in a statement the move comes as a part of its strategy for 2015 and beyond.
"We are actively managing and reviewing our business portfolio. The decision to refocus our commodities business is based on our identification of more attractive ways to deploy our capital and balance sheet resources. This move responds to industry-wide regulatory change and will also reduce the complexity of our business," he said.
The bank also noted a special commodities group was created to manage the wind down of these commodities businesses while the derivatives and precious metals components will be integrated into the fixed income and currencies platform..