On 12 September 1919 at 11:00 am, the five principal gold bullion traders and refiners of the day (N M Rothschild & Sons, Mocatta & Goldsmid, Pixley & Abell, Samuel Montagu & Co. and Sharps Wilkins) performed the first London gold fixing, and thus became the original five founding members.
The fixing historically took place at the London offices of N M Rothschild & Sons in St Swithin’s Lane, but since 5 May 2004 it takes place by a dedicated telephone conferencing system. … In April 2004 N M Rothschild & Sons announced that it planned to withdraw from gold trading and from the London gold fixing. Barclays Capital took its place on 7 June 2004 and the chairmanship of the meeting, formerly held permanently by Rothschilds, now rotates annually. On 23 May 2014 the Financial Conduct Authority announced it had fined Barclays £26 million for systems and controls failures, and conflict of interest in relation to the gold fixing over the nine years to 2013, and for manipulation of the gold price on 28 June 2012.
The current participants in the fixing, who must also be members of the London Bullion Market Association, are:
Scotia-Mocatta (the global bullion banking division of Scotiabank)
November 27th 2013: German regulator BaFin announces that it is reviewing how banks participate in the gold and silver price setting
BLOOMBERG says “The regulator is looking at the procedures at “individual banks,” Ben Fischer, a spokesman for Bafin, said in an e-mailed statement today.”
December 12th 2013: The Financial Times states that BaFin has already been interviewing Deutsche Bank on this for several months and has demanded various documens from Deutsche.
FINANCIAL TIMES: “BaFin has grilled Deutsche Bank staff during several on-site inspections in the past few months”
Wednesday January 15th 2014: Reuters reveals that Deutsche has suspended New York based FX traders and that Fed and
OCC visited Citigroup offices in Canary Wharf, London
REUTERS: “Deutsche, Citi feel the heat of widening FX investigation”
Thursday January 16th 2014: BaFin’s president Elke König says in a speech in Frankfurt that currency and precious metals price manipulation is “worse than Libor”.
BLOOMBERG: “Metals, Currency Rigging Is Worse Than Libor, Bafin Says”
Friday 17th January 2014: Deutsche Bank announces that it is withdrawing from the gold and silver price fixings
REUTERS: “Deutsche Bank is withdrawing its participation in the gold and silver benchmark setting process following the significant scaling back of our commodities business.
Monday 20th January 2014: Matthew Keen, Director (precious metals) at Deutsche Bank resigns as a director of the gold and silver fixing companies and Kevin Rodgers, Global Head of Foreign Exchange at Deutsche Bank is appointed as Deutsche Director in both of these companies (why an FX trader is appointed to trade commodities is not quite clear).
On the same day, Matthew Keen also resigns as the Deutsche director representative of London Precious Metals Clearing Limited (LPMCL) and is replaced by Raj Kumar, Deutsche’sEuropean COO, Commodities.
Curiously, Matt Keen did not operate out of either London or Frankfurt, but instead relocated from London to Dubai with Deutsche in 2012. Is that the farthest one could get away from US and European regulators one wonders?
Sometime in February or March – Deutsche stops contributing to GOFO
LBMA rolled out a new web site in ealr April. This was mentioned in the LBMA’s Alchemist, Issue 73, published March 31st. The wayback machine has an imprint from the new site on April 9th. In the GOFO contributor list, Deutsche is not listed
Deutsche disappeared from GOFO before 9th April – new web site
Deutsche was still listed as a GOFO contributor on the old LBMA web site, latest imprint is February
Old GOFO – February
Sometime in February or March – Deutsche ceases to be a market maker for forwards
Deutsche not a forward market maker now
Old market makers list – February 14th
April 25th 2014: Reuters reports that sources say Deutsche canot sell gold and silver seats due to US lawsuits
REUTERS: “U.S. lawsuits hobble Deutsche Bank’s bid to sell gold fix seat”
Just what was Deutsche worried buyers would find during the due diligence?
April 28th 2014: Deutsche Bank announces that Kevin Rodgers, Global Head of FX is quitting the bank in June
WALL STREET JOURNAL: “Deutsche Bank Head of Forex to Retire – Kevin Rodgers to Leave Industry in June; Departure Not Linked to Global Investigation”
Burying the evidence, and firing the bodies?
April 29th 2014: Deutsche resigns seats on gold and silver fixes, can’t sell them, gives 2 weeks notice, last day 13th May
REUTERS: “Deutsche Bank resigns gold, silver fix seat with no buyer”
Saturday May 10th 2014: FT’s John Dizard comments that “Precious metals market people tell me that even in advance of Deutsche’s formal departure from both the gold and silver fix, the bank had reduced its participation in putting up bids or offers at the silver fix very substantially.”
FINANCIAL TIMES: “No silver lining for gold-fix regulation”