SocGen Resigns as London Gold and Silver Market Maker

Published by Goldbroker ™ | Apr 30, 2019 | Articles 465

By Peter Hobson

The London Bullion Market Association (LBMA) said Societe Generale had resigned as a market maker for gold and silver, as France’s third-largest bank pushes ahead with a downsizing of its commodities business.

SocGen said this month it would cut 1,600 jobs to boost profits after poor performance last year and exit over-the-counter commodities trading. 

SocGen declined to comment on its resignation. 

In over-the-counter trading deals are done bilaterally between banks and brokers rather than on a financial exchange. London is the world’s largest over-the-counter gold trading hub, overseen by the LBMA. 

Market makers commit to provide liquidity to the market. SocGen’s exit leaves 12 LBMA market-making banks including JPMorgan, HSBC and BNP Paribas.


Original source: Reuters


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