ED&F Man is planning the launch of an interdealer-broker service in London focused on listed equity derivatives, following a series of steps taken over the past year to diversify beyond its traditional strength in the commodities markets.

The firm currently offers brokerage services to hedge funds, corporations and high-net-worth individuals, but is looking to expand its financial products business - launched as ED&F Capital Markets last year - to banks, according to two sources familiar with the situation.