(Writes through with context)
By Clara Denina
LONDON, Aug 20 (Reuters) - Deutsche Bank DBKGn.DE is to
sever its last link with commodity trading by resigning as a
clearing member of the London gold and silver over-the-counter
business, two industry sources close to the matter said on
Thursday.
The move leaves five banks -- Barclays BARC.L , HSBC
HSBA.L , Bank of Nova Scotia BNS.TO , JP Morgan JPM.N and
UBS UBSG.VX -- to settle daily bullion transactions between
dealers, amounting to more than $5 trillion worth of metal each
year.
"Deutsche Bank is resigning as a shareholding member of the
London Precious Metals Clearing (LPMCL) company," one of the
sources said.
Deutsche declined to comment.
The German bank was a founding member of the LPMCL, which
was set up in 2001 to develop an electronic matching system to
replace trading by phone or fax.
It closed its physical precious metals trading arm in
November 2014, after exiting other physical commodities
business, covering energy, base metals and dry bulks in 2013.
The bank withdrew from gold and silver benchmark price
setting in January 2014.
"Deutsche Bank told the LPMCL and other clearers they are
resigning and there are a few companies interested," an industry
source said.
Another banking source said when "Deutsche were closing
their precious metals trading business, they offered their
clients base and other services to the market (other banks)."
But with other banks also withdrawing from the commodities
business to cut costs and reduce their regulatory burden, it
"would always be difficult to find takers," the source added.
However, the first banking source said "there is one other
bank, Standard Chartered , that could become a gold and silver
clearing member in the next few months."
Standard Chartered STAN.L declined to comment.
(Editing by Pratima Desai and Pravin Char)