The announcement comes after the completion of an internal review of physical commodities business, including its remaining holdings of commodities assets and physical trading operations.
The bank said that the profit earned by the business is not much attractive and dealing with market regulators proved challenging.
Until it finds a suitable option to maximize the value of the operation, it will continue to manage its physical commodities business as a going concern and fully support ongoing client activities.
The lender said the bank remained ‘fully committed’ to its traditional financial commodity operations, including trading derivatives and the vaulting and trading of precious metals.
Further, the company will continue to make markets, provide liquidity and offer advice to global companies and institutions that have, for years, depended on JP Morgan’s global risk management expertise.
Having assets of $2.4trn with operations worldwide, JP Morgan Chase & Co caters investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity.
