Deutsche bank resigns from London gold & silver fix
Duncan Richardson, News Editor
30 Apr 2014, 10:32 a.m.
Deutsche Bank resigned its seat on the London gold and silver fix yesterday after failing to find a buyer. The news comes just three months after the bank decided to quit the price setting process. According to Reuters, Deutsche Bank will officially step down on the 13th of May.
Deutsche Bank’s decision to resign its seat has coincided with investigations by both UK and German regulators into possible gold and silver price manipulation. Whilst in the U.S. a number of lawsuits have been filed accusing the existing members of colluding to manipulate the price. The gold and silver fix is a pricing benchmark used by industry participants such as central banks and jewellers to price deals.
The four remaining members of the gold fix will be HSBC Holding, Barclays Bank, Bank of Nova Scotia and Societe Generale. As a result of the resignation only HSBC and Scotiabank will be the remaining members of the silver fix.