Societe Generale resigns as London gold market maker

Thursday, 2 May 2019 02:19 - - {{hitsCtrl.values.hits}}

London (Reuters): The London Bullion Market Association (LBMA) said Societe Generale had resigned as a market maker for gold, 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.

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.