The Conversation (0)
Bloomberg reported that the London Metal Exchange (LME) is speaking with the World Gold Council and five banks about introducing futures contracts on gold and standardized central clearing.
Bloomberg reported that the London Metal Exchange (LME) is speaking with the World Gold Council and five banks about introducing futures contracts on gold and standardized central clearing. The banks involved are ICBC Standard Bank plc, Citigroup Inc. (NYSE:C), Morgan Stanley (NYSE:MS), Goldman Sachs Group Inc. (NYSE:GS) and Societe Generale SA (EPA:GLE).
People familiar with the matter said the talks “are exploratory and there’s no time frame for a decision on the contract.”
As quoted in the market news:
The banks and World Gold Council asked for proposals last year from a group of exchanges, including London Stock Exchange, Intercontinental Exchange Inc. and CME Group Inc., on how to start clearing and listed derivatives on gold, the people said. The LME was chosen from that group for more detailed talks, they said.
The LME, the world’s biggest metals bourse, has said for years that it wants to expand into London’s gold market. A move to exchange clearing would reflect a broader shift across global markets as regulators push for more transparency and tighter controls in over-the-counter markets.
