Being JP Morgan Bank A review of his work with some of his commodity clients including metal traders and oil refineries, following strong gains on nickel last month that rocked the London Commodity Exchange.
According to Bloomberg sources, the US bank is adjusting its exposure to commodities amid increased market volatility, noting that it is one of the largest players in the global commodity markets and the largest in terms of metals.
The bank is working to reduce its exposure to the nickel market, and it also requires additional administrative approvals for new financing deals in minerals.
This came following the strong rises in nickel prices last month, as their prices rose 250% in one day, which prompted a Chinese company that is the largest producer of the metal in the world and a JPMorgan customer to cover its short positions, amid betting on the decline in prices.
But trading on nickel was suspended for a week, deals were canceled at the highest prices, and banks agreed not to demand more coverage of the short positions of the Chinese company to calm the situation.
