(Corrects to show that London-based commodities brokerage, not entire commodities trading arm, being sold)
PARIS, Aug 5 (Reuters) - Natixis has agreed to sell its London-based commodities brokerage to Chinese brokerage GF Securities, a spokeswoman for the French bank said on Monday.
The move comes as banks are facing increased regulatory scrutiny over an area which was once seen as a fast-growing market but has since emerged as a drag on capital at a time of tougher requirements.
The Financial Times earlier reported the Chinese brokerage paid slightly less than $40 million in cash for the unit. That figure could not immediately be confirmed. (Reporting By Christian Plumb; editing by Astrid Wendlandt and Tom Pfeiffer)