Players in London’s gold bullion market have offered a mixed reaction to the London Metal Exchange's proposals to offer OTC clearing to the London bullion market, with exchange members seemingly in favour but analysts remaining sceptical.
Chief executive Martin Abbott confirmed at a press conference on Friday that the LME was discussing the idea of clearing OTC gold contacts with the bullion trading community.
“We’ve been holding discussions with the London bullion market,” said Abbott. “Our own members are telling us they want this.”
He stressed that the LME’s discussions were strictly with market participants and not with the London Bullion Market Association. Sources believe the exchange is close to making a firm announcement on its proposals.
Some market participants have been sceptical about the potential move. Asked whether he...