DBS Group Holdings, Singapore's biggest lender, said on Friday it will be progressively wind down its commodity derivatives trading business over the next six months.
The move comes as many foreign banks have exited the commodities derivatives trading business, which is capital intensive and where margins are under pressure. "We expect short-term market making activities in commodity derivatives to be costly to maintain," a DBS spokesman said in an email.
The commodities derivatives team has 11 employees, and they will be offered opportunities within the bank, DBS said.
No new positions will be put on, effective Friday, DBS said.