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By Clara Denina
LONDON, Aug 20 (Reuters) - Deutsche Bank is tosever its last link with commodity trading by resigning as aclearing member of the London gold and silver over-the-counterbusiness, two industry sources close to the matter said onThursday.
The move leaves five banks -- Barclays, HSBC, Bank of Nova Scotia, JP Morgan andUBS -- to settle daily bullion transactions betweendealers, amounting to more than $5 trillion worth of metal eachyear.
"Deutsche Bank is resigning as a shareholding member of theLondon Precious Metals Clearing (LPMCL) company," one of thesources said.
Deutsche declined to comment.
The German bank was a founding member of the LPMCL, whichwas set up in 2001 to develop an electronic matching system toreplace trading by phone or fax.
It closed its physical precious metals trading arm inNovember 2014, after exiting other physical commoditiesbusiness, covering energy, base metals and dry bulks in 2013.
The bank withdrew from gold and silver benchmark pricesetting in January 2014.
"Deutsche Bank told the LPMCL and other clearers they areresigning and there are a few companies interested," an industrysource said.
Another banking source said when "Deutsche were closingtheir precious metals trading business, they offered theirclients base and other services to the market (other banks)."
But with other banks also withdrawing from the commoditiesbusiness to cut costs and reduce their regulatory burden, it"would always be difficult to find takers," the source added.
However, the first banking source said "there is one otherbank, Standard Chartered, that could become a gold and silverclearing member in the next few months."
Standard Chartered declined to comment.
(Editing by Pratima Desai and Pravin Char)