16 November 2006 08:50 [Source: ICIS news]
AMSTERDAM (ICIS news)--The expansion of large commodity trading houses into aromatics will bring added liquidity to the market, a European broker said on Wednesday.?xml:namespace>
The year has already seen the emergence of three new traders in the European market, said David Phillips, broker at RP&B, at the fifth European Aromatics and Derivatives conference in Amsterdam.
Commodity traders Masefield, Noble and Sempra were already active in aromatics and could prove instrumental in moving traditional trading towards more hedging and risk management, he said.
Amongst the trading community, the broker still provided good value for money on the commission rate of 50 US cents/tonne, he added. The role was chiefly in bringing buyers and sellers together.
“Brokers should not be market makers,” he said.
The conference, organised by ICIS and consultants International eChem, finishes today.
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