Barclays Capital, the investment banking division of the UK bank, has become the first bank to offer a service that centralises over-the-counter commodities trading for its prime brokerage clients, in a move that will put the bank into competition with clearing houses such as London-based LCH.Clearnet.

The service, which has opened for business after an 18-month pilot phase, provides a single point of contact for hedge funds wishing to trade over-the-counter commodity derivative contracts, according to Mark Croxon, head of derivatives prime brokerage at BarCap.