LONDON, Feb 6 (Reuters) - Japan’s Mitsubishi UFJ Securities International is closing its international commodities business, partly due to increasing regulation, three sources close to the situation told Reuters.
The closure will affect offices in London, New York and Singapore, one of the sources said.
“This was a strategic decision. They’ve decided to close the commodities business after an extensive review. The complex regulatory environment was a big factor,” said the source, who declined to be identified.
An internal announcement about the closure, which took effect immediately, was made on Wednesday, a second source said.
Mitsubishi UFJ Securities International is an investment banking arm of Mitsubishi UFJ Financial Group, Japan’s biggest bank, and is separate from trading house Mitsubishi Corp .
Officials at Mitsubishi UFJ Securities Holdings in Tokyo were not immediately available for comment.
The commodities business was involved in metals, energy and carbon emissions derivatives trading, according to the company’s website. (Reporting by Silvia Antonioli, Eric Onstad, Clara Denina and Taiga Uranaka; Editing by Dale Hudson)