Deutsche Bank conducts internal probe into trading on gold "fix"
* Deutsche Bank resigned gold and silver "fix" seats in May
* Bafin starts investigating Deutsche Bank in mid-2013
By Clara Denina
LONDON, June 19 (Reuters) - Deutsche Bank is conducting its own investigation into trading around the setting of London's daily gold price benchmark, in addition to one being carried out by Germany's financial watchdog, sources close to the matter said.
The German bank had been a member of the century-old gold "fix" - a widely used price set twice a day by five banks in a conference call - for two decades until May, when it resigned from the processes for gold and silver.
An internal investigation can be triggered by scrutiny from external regulators as a bank would need to examine its own processes to answer questions raised.
Taking early action as a result of an internal probe may also mitigate the impact of any sanction the regulator imposes.
"The external regulator Bafin visited (Deutsche's London offices) over a year ago now and looked at the metals business and all the benchmarking issues. That's when the internal audits started as well," one source said.
"They (Deutsche Bank) will be thoroughly investigating the trading activity that has taken place, particularly on binary trades." Continued...