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Bullion banks on the run?
Reuters Exclusive: LME's Gold, Silver Contracts in Doubt as Societe Generale Pulls Out
By Peter Hobson and Pratima Desai
Wednesday, September 4, 2019
LONDON -- The London Metal Exchange's gold and silver futures are being thrown into doubt with the imminent resignation of Societe Generale as a market maker threatening to deepen a decline in trading activity, three sources said.
SocGen, one of five lenders that partnered with the LME to launch the contracts in 2017, is expected to resign shortly as a market maker, taking the number of banks committed to offering tradeable prices to two -- Goldman Sachs and Morgan Stanley, the sources said.
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That has triggered a discussion over the contracts' future.
"There's still commitment," said one of the sources. But if volumes remain low, they added, "we’ll have to sit down and decide what is the next stage -- exit, restructuring, or something else." ...
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