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Reduction of banks in London gold and silver fixes worries UK regulator

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gata.org / By Clara Denina and Susan Thomas, Reuters / Tuesday, April 29, 2014

LONDON — Britain’s financial watchdog could intervene if there are too few participants to set commodity benchmarks including gold and silver, a senior official at the Financial Conduct Authority (FCA) said.

U.S. investors and traders have filed almost 20 antitrust lawsuits against the five banks involved in the London gold fix, accusing them of colluding to manipulate the bullion price.

One of them, Deutsche Bank, resigned from the gold and silver fix tables on Tuesday, just three months after putting its seat up for sale, after failing to find a buyer.

Sources told Reuters the lawsuits had deterred potential buyers. …

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