Deutsche Bank is to sever its last link with commodity trading by resigning as a clearing member of the London gold and silver over-the-counter business, two industry sources close to the matter said on Thursday. The move leaves five banks - Barclays, HSBC, Bank of Nova Scotia, JP Morgan and UBS - to settle daily bullion transactions between dealers, amounting to more than $5 trillion worth of metal each year. "Deutsche Bank is resigning as a shareholding member of the London Precious Metals Clearing (LPMCL) company," one of the sources said.
The German bank was a founding member of the LPMCL, which was set up in 2001 to develop an electronic matching system to replace trading by phone or fax.