China’s ICBC Standard Bank is reportedly buying the lease on Deutsche Bank's London gold and silver vault, enlarging its footprint in the city's bullion market, according to a Reuters report.
ICBC, which took a controlling stake in Standard Bank's London-based Global Markets business last year, has also applied to become a clearing member of the London gold and silver over-the-counter business. The bank is aiming to fill the gap left by Western banks, which are retreating from commodities to cut costs and reduce regulatory burden.
Currently, five banks - JP Morgan, HSBC, Bank of Nova Scotia, Barclays and UBS - settle daily bullion transactions between dealers, amounting to more than $5 trillion worth of metal each year in the London over-the-counter market. These banks, which are shareholders of the London Precious Metals Clearing (LPMCL) company, will decide whether to accept or reject ICBC Standard Bank's application within the next few months.
Aruna Gaitonde, Editor-in-Chief of Asian Bureau, Rough & Polished
ICBC, which took a controlling stake in Standard Bank's London-based Global Markets business last year, has also applied to become a clearing member of the London gold and silver over-the-counter business. The bank is aiming to fill the gap left by Western banks, which are retreating from commodities to cut costs and reduce regulatory burden.
Currently, five banks - JP Morgan, HSBC, Bank of Nova Scotia, Barclays and UBS - settle daily bullion transactions between dealers, amounting to more than $5 trillion worth of metal each year in the London over-the-counter market. These banks, which are shareholders of the London Precious Metals Clearing (LPMCL) company, will decide whether to accept or reject ICBC Standard Bank's application within the next few months.
Aruna Gaitonde, Editor-in-Chief of Asian Bureau, Rough & Polished
