(Bloomberg) — Archer-Daniels-Midland Co. ( ADM ) is exploring a sale of its futures brokerage arm, as the company weighs divestitures to slash costs, according to people familiar with the matter.

The commodities trading and food-processing conglomerate is working with a financial adviser to seek a buyer for ADM Investor Services Inc., or ADMIS, said the people, who asked to not be identified because the details aren’t public.

While it isn’t clear how much ADMIS might fetch in a sale, it holds $439 million in adjusted net capital, according to filings. Rival Marex Group Plc ( MRX ) currently trades at more than three times its adjusted net capital.

A final decision on exploring a sale hasn’t been made and ADM could opt to hold onto the unit, the people said. A representative for ADM declined to comment on the potential asset sale.

“We are always assessing our portfolio as part of our commitment to capital discipline, but as a general rule we don’t comment on rumors or speculation about specific projects,” said the spokesperson.

1930s Roots

ADMIS, which traces its roots to the 1930s, provides trade execution and clearing services, as well as market analysis, according to its website. The business had $7.69 billion of customer assets under segregation as of Jan. 31, up 8% from a year earlier, Commodity Futures Trading Commission data shows. The futures broker holds $439 million in adjusted net capital. The intermediary was the 13th largest futures clearing merchant by client assets in January, ahead of Wells Fargo Securities LLC ( WFC ) and up from 14th place a year earlier.

ADM’s financial results do not break out the financial performance of ADMIS, but the operating profit of the business unit the brokerage sits within fell 34% to $247 million in 2024, a figure that also includes the performance of ADM’s in-house insurer.

“Lower net interest income from reduced trading activity levels drove decreased earnings in ADM Investor Services,” the company’s annual report notes. Some staff were paid less in 2024 than in the prior year. The annual report refers to “decreased incentive compensation driven by lower company performance.”

ADM has been criticized by investor Hartwig Fuchs over the way the company has handled what began as a US Securities and Exchange Commission probe into its accounting practices and has since broadened to include a criminal investigation by the US Justice Department.

Clearing brokers like ADMIS give clients access to derivatives markets used by producers and traders to hedge against the impact of price moves.

—With assistance from Isis Almeida.