Report: Chinese bank poised to join London gold fix.

A new report suggest South Africa's Standard Bank, in conjunction with Industrial and Commercial Bank of China, is in "prime position" to buy the Deutsche seat:

"Standard Bank is a shoo-in for the fixing seat – they want it, and it would be acceptable to the other members," a senior gold market source told Reuters. "It's just whether they can agree a fee."

The UK's Financial Conduct Authority launched a probe late last year over the way gold prices are set every day in London by five banks – Deutsche, Scotia-Mocatta, Barclays, HSBC and Société Générale – acting as market makers in an obscure process that dates back to 1919.

According to the London Bullion Market Association, total trading volume in gold per day is some $240 billion, with only a tiny fraction of the total ever physically settled.

Reuters reports the last time a seat was vacated was in 2004, when NM Rothschild and Sons sold theirs to Barclays for a purported $1 million.

ICBC,the globe's largest bank in terms of market value and assets under management, has been "steadily building its presence in the gold market since setting up its precious metals department in 2009," and is particularly keen to expand overseas.

A fortnight ago, ICBC announced the purchase of the London commodities-focused arm of Standard Bank, Africa's largest bank, in which it already owns a 20% stake.

ICBC is paying $765 million for 60% of the London unit of Johannesburg-based Standard Bank, gaining access to a well-established commodities, credit and forex trader with affiliates and operations in all the major trading hubs including New York, Hong Kong, Tokyo and Shanghai.

The Chinese giant, which boasts more than four million business clients and services 410 million retail customers, also received a five-year option to purchase another 20% of Standard Bank's global markets unit for up to $500 million in cash.

Read More: www.mining.com/report-chinese-bank-poised-to-join-london-gold-fix-50650/