September 25, 2014 / 7:42 PM / 5 years ago

LBMA names Citigroup as gold, silver market maker

NEW YORK, Sept 25 (Reuters) - The London Bullion Market Association (LBMA) said on Thursday it appointed Citigroup as a market maker, underscoring the bank’s ambitions to expand into the precious metals sector while others are exiting due to regulatory concerns.

LBMA said it named Citibank NA, a unit of Citigroup, as a spot market-making member effective Thursday.

Currently, LBMA has 12 market makers which serve in either one, two or all three of the spot, forwards and options markets. They make markets by quoting two-way prices in both gold and silver products to other market makers.

In July, Citi named Giovanni Laureri as its head of precious metals sales in Europe, Middle East and Africa. Laureri was formerly an executive director of precious metals with UBS, according to his Linkedin profile.

With the exception of Citi, other global banks have mostly reduced exposure to gold and silver trading, driven by increased scrutiny of precious metals ‘fixes’ by European and U.S. watchdogs in the wake of benchmark manipulation in other financial markets.

Earlier this month, the LBMA has formally started the process to find a new administrator for the century-old mechanism that will halt the telephone call that four institutions enter twice a day in favor of an electronic solution. (With additional reporting by Clara Denina in London; editing by Andrew Hay)

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