Deutsche Bank AG (DBK) will withdraw from participating in setting gold and silver benchmarks in London after Europe’s top investment bank joined JPMorgan Chase & Co. and Morgan Stanley in cutting back on commodities.
The German bank will put up for sale its gold and silver fixing membership and stop submitting gold forward offered rates, according to a person familiar with the decision, who asked not be identified because the information isn’t public.
The move comes a month after the Frankfurt-based lender said it will exit dedicated energy, agriculture, dry bulk and base metals trading and transfer its financial derivatives and precious metals desks to the fixed income and currencies division. The bank is one of five gold and three silver members that participate in setting London fixings, benchmark rates used by mining companies, jewelers and central banks to buy, sell and value the metals.
“Deutsche Bank is withdrawing its participation in the gold and silver benchmark-setting process following the significant scaling back of our commodities business,” it said in an e-mailed statement today. “We remain fully committed to our precious metals business.”
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