Grupo BTG Pactual has filed an application to be able to operate a commodities warehousing business in the US. The biggest independent investment bank in Latin America submitted the application to the commercial licensing bureau of Michigan on November 26 as the lender intends to bolster its physical commodities trading enterprise. Last October 16, BTG Pactual Commodities also applied to be able to trade physical and financial commodities and registered warehousing.

According to a Reuters report, BTG had made a bold push to the commodities markets under Ricardo Leiman, a former Chief Executive Officer of Noble Group. This year, BTG engaged the services of over a dozen high-profile commodities traders from London, New York and Geneva in markets raning from energy to grains, the report added.

BTG also hired metals warehousing expert Shon Loth in August. A separate Reuters report said the hiring of Loth was one of the strongest signs that BTG intended to include metals and warehousing in its quest to expand into the physical commodity trading space. Loth formerly ran Worlwide Warehouse Solutions, the warehouse company of Noble Group Ltd.

Another source also told Reuters in October that the bank was also mulling an offer for the physical commodities business of JPMorgan Chase & Co. JPMorgan put the unit which includes natural gas, crude oil and base metals trading operations up for sale in July.

In a conference call last month to discuss the company's third quarter results, BTG Chief Financial Officer Marcelo Kalim said the sales and trading operations of commodities are starting to affect the company's earnings. He added that BTG may grow its commodities business through acquisitions.

BTG holds headquarters in Sao Paulo, Brazil. According to its website, BTG's services include underwriting in the public and private debt and equity markets, corporate advisory services in mergers and acquisitions and tailor-made financial services and structured products. Aside from its capabilities in Latin America, the bank also has cross-border capabilities through its New York and London banking teams and strategic alliances in China and Japan.