Little News from WGC on Purported Plan for London Exchange
Platts reported that the World Gold Council (WGC) has not commented definitively on reports that it has been speaking with a group of banks about setting up an exchange in London. The rumored move is reportedly an effort to boost market transparency.
Platts reported that the World Gold Council (WGC) has not commented definitively on reports that it has been speaking with a group of banks about setting up an exchange in London. The rumored move is reportedly an effort to boost market transparency.
A spokesperson from the WGC said:
We are constantly exploring potential market development initiatives. So, it is in the normal course of business that we are engaged in discussions with a number of individuals and organizations regarding the operation of the global gold market.
As the market development organization for the gold industry, our overriding aim is to encourage a transparent, efficient and liquid gold market.
The reaction from market watchers has been mixed:
‘It is not clear to me what role the organization could play in establishing a new London exchange, nor what benefits such an exchange might bring to either the process of price discovery or to members,’ the broker said.
A trader said that ‘on the surface, it seems to make sense’, while an analyst said the story seemed to be a rehash of a rumor first circulated last year. ‘There was an article resurfaced on this topic a week or so ago, but I think it was just the old article from last year,’ he said.