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PrintDeutsche Bank has laid off two iron ore swaps traders -- one in Singapore and one in London -- and is "closing its book" as part of Strategy 2015+, several market sources told Platts Monday.
This is despite the bank insisting it will keep trading iron ore derivatives.
"The iron ore desk would be part of what we're winding down, but I can't comment on timeline or staff," company spokesman Nick Bone said by telephone.
"We're keeping the financial derivatives across all asset classes, including iron ore." The ore swaps traders were also involved in trading steel derivatives to a lesser extent.
Ore swaps represent the majority of liquidity in the ferrous swaps space, with hot rolled coil, scrap, Black Sea billet and coking coal all still fairly embryonic.
Chinese exchanges host liquid futures contracts for iron ore, coking coal and coke, but these are not always open to the wider market outside the country.
Deutsche will also cease physical iron ore trading as part of the move, which will see it close its dedicated trading desks for energy, agriculture, base metals and dry bulk.
The bank is continuing to run its options book at present out of Singapore.
Adam Farthing, who runs the book, is also in charge of precious metals trading, which will continue.
Around 200 people have been affected by Strategy 2015+. Some were laid off immediately, while others will continue in their roles for another two years as trading is wound down.
Deutsche was an important player in the iron ore swaps market at its inception, and had continued to trade until recently, sources said.
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