Bank of Nova Scotia (TSX: BNS) has begun recruiting staff to restore its metals trading operations, five years after shutting down one of the industry’s most established desks during the pandemic.
The Canadian bank has engaged recruiters to find commodities traders, sales specialists and strategists for the revived unit, according to Bloomberg. The desk will handle trading, lending and hedging for precious and base metals, with precious metals receiving initial priority.
The move reverses the bank’s 2020 decision to exit the metals business entirely. The shutdown ended a 336-year legacy that began when Scotiabank acquired Mocatta Bullion from Standard Chartered in 1997. Mocatta, founded in 1684, operated as one of the original members of both the London Gold and Silver fixes.
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The bank’s departure from metals trading followed a difficult period marked by multiple challenges. Class-action lawsuits in the United States and Canada accused Scotiabank and other major banks of manipulating precious metals markets through the London Gold Fixing. The bank also failed to find a buyer after conducting a strategic review in 2018.
Scotiabank had sharply reduced its metals operation from approximately 140 employees in 2015 to roughly 15 by early 2020, with most cuts affecting its New York and London offices. The bank completed its exit from the business by early 2021.
Market conditions have shifted dramatically since that withdrawal. Gold, copper and silver have posted record-breaking rallies, creating renewed opportunities in commodities trading. Some analysts now project gold prices could reach $5,000 per troy ounce in 2026.
The revival also reflects increased demand for trading services as commodity price volatility creates arbitrage opportunities across global markets.
Scotiabank maintains its position as a major lender to mining companies and continues to host an annual mining conference in Toronto. The bank ranks among the top equity sales trading firms in Canada for base metals and large-cap precious metals sectors.
The timeline for launching the new desk and the size of the planned operation remain unclear.
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