* China markets yuan pricing to foreign exchanges
* Singapore looking to bring London pricing to Asia
By Manolo Serapio Jr and Koustav Samanta
SINGAPORE, Oct 17 China is marketing its yuan
gold price to foreign exchanges and Singapore is looking at
bringing London's gold benchmark to users in Asia, in moves
meant to boost the region's exposure and influence in the global
Home to the world's biggest buyers China and India, Asia's
importance has been on the rise as the key source of demand for
gold, but the region's bullion traders are often exposed to
intraday price volatility and foreign exchange risks with U.S.
dollar-based benchmark prices being set out of London.
Shanghai Gold Exchange, the world's biggest physical bullion
exchange, will collaborate with foreign exchanges and allow them
to use its yuan-denominated gold price in developing derivatives
products, Chairman Jiao Jinpu told an industry conference.
The exchange launched a yuan-denominated gold benchmark in
April as part of China's bid to exert more control over pricing
of the metal and increase its influence in the global market.
The latest move is an aggressive step by China - the world's
top consumer, producer and importer of gold - to market its
pricing mechanism and aims for a bigger say in an industry long
dominated by the London spot price.
"We would collaborate with various exchanges and authorise
these external exchanges to start business outside China to use
it as a basis for development of derivatives products," Jiao
told an industry conference through an interpreter.
Shanghai's first deal will be signed with the Dubai Gold &
Commodities Exchange next week, Jiao told reporters, adding that
he expects more cooperation ahead.
"Some of the exchanges are approaching us," he said.
"Collaboration is a win-win for all. In Latin America and Africa
I wish to offer more collaboration with them."
China has baulked at depending on a dollar price for gold in
international transactions and believes its market weight should
entitle it to set the price for the precious metal.
LONDON TO SINGAPORE
Also, the Singapore Bullion Market Association (SBMA) is
working with the London Bullion Market Association (LBMA) and
Intercontinental Exchange Benchmark Administration to
study the possibility of extending LBMA's gold pricing to
"We hope to make a reputable gold benchmark mechanism in
London available to Asian users," SBMA's chief executive, Albert
Cheng, told Reuters.
Cheng said a feasibility study is being carried out, and "if
there's enough interest, the IBA will consider launching it
early next year."
The renewed pricing push in Asia come as the
$5-trillion-a-year London gold market undergoes reforms to boost
transparency. The London gold fix, previously set via a
teleconference among banks and facing allegations of
manipulation, was replaced in 2015 by electronic auctions, which
take place twice daily.
The LBMA last week named Cinnober subsidiary Boat as the
service provider for its new trade reporting platform.
Intercontinental Exchange on Monday said it would launch a
London gold daily futures contract in February 2017, heating up
the race to gain a bigger chunk of the market.
In August, the London Metal Exchange said it was planning to
launch spot and futures contracts for gold and silver in the
first half of 2017.
"It's interesting to me there's so much interest in the
London market," said Miguel Vias, head of precious metals at CME
Group, the world's biggest exchange operator.
"I think its emblematic of the fact that it's under stress.
There's a lot of concern about how it's going to look in the
(Reporting by Manolo Serapio Jr. and Koustav Samanta; Editing
by Tom Hogue)