Macquarie executed its first trade for a lithium consumer client in December 2022.
Since then, the business has been building its capabilities and is trading growing volumes of lithium. It can execute through The Chicago Mercantile Exchange (CME), Singapore Exchange (SGX) and The London Metal Exchange (LME), for a tenor of up to 24 months, and in both compounds: lithium hydroxide and lithium carbonate.
In an effort to continuously widen the offering of risk management tools, Macquarie can provide options on lithium hydroxide and is also one of the few international banks able to offer swaps on onshore Guangzhou Futures Exchange (GFEX) lithium carbonate futures.
As this business expands, it becomes better positioned to support clients with higher volumes and more competitive pricing, as clients’ varying needs create two-way trade flow, allowing Macquarie to effectively manage this risk in-house.
