April 30, 2019 / 11:45 AM / a month ago

Societe Generale resigns as London gold and silver market maker

FILE PHOTO: The logo of Societe Generale is pictured outside the headquarters of the French bank at the financial and business district of La Defense at Puteaux near Paris, outside Paris, France, May 16, 2018. REUTERS/Charles Platiau

LONDON (Reuters) - 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.

(This story has been amended after SocGen corrects its statement that it made markets only in gold)

Reporting by Peter Hobson; editing by Veronica Brown and Dale Hudson

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