Deutsche Bank is exiting physical trading of precious metals as it scales back its securities unit to improve returns.
Bloomberg News reports that the decision to cease physical trading of gold, silver, platinum and palladium was announced internally yesterday and will probably result in the loss of fewer than five jobs, said a person with direct knowledge of the matter, who asked not to be identified because the information is private.
Deutsche Bank’s exit from physical metals trading extends its plan announced a year ago to give up the majority of its commodities trading business in the face of declining revenue and stricter capital rules. The Frankfurt-based bank said last week it would stop trading most credit-default swaps tied to individual companies, another business regulation has made costlier.
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