ADM takes over ICAP's base metals broking business

(Adds details, background)

By Eric Onstad

LONDON, Jan 21 (Reuters) - ADM Investor Services International Ltd (ADMISI) has boosted its commodity division with a transfer of the base metals broking operations from major broker ICAP (LSE: IAP.L - news) , it said on Wednesday.

An emailed statement said the transfer was completed on Jan. 2 and the team trading on the London Metal Exchange (LME) would continue to be led by Robert Rees.

"We are pleased to further strengthen our LME client offering with the addition of this ICAP team, enhancing our considerable strength in both LME and commodities," the statement said. It did not give any further details, such as financial arrangements.

Last month, industry sources told Reuters that ICAP planned to exit its base metals broking business on the LME at the end of December, as part of wider restructuring.

ADMISI is a category 2 member of the LME, meaning it can trade on the exchange's electronic platform and by telephone but not in the open outcry "ring".

Rees was global head of base and precious metals at ICAP and previously worked at Dresdner Kleinwort and Bear Stearns. He will be supported by Jason Geddis and Edward Fremiln-Key.

ADMISI is the London-based investment brokerage division of giant U.S. agribusiness group Archer Daniels Midland Co., offering services in equities, futures, options, commodities and foreign exchange. (Reporting by Eric Onstad; editing by Susan Thomas)