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LME says in talks on launch of precious metals derivatives
September 10, 2015 / 11:38 AM / 2 years ago

LME says in talks on launch of precious metals derivatives

MUMBAI, Sept 10 (Reuters) - The London Metal Exchange (LME) is in talks with the gold industry with a view to launching precious metals derivatives, LME Chief Executive Garry Jones said on Thursday.

“There is no listed derivative in precious metals in London. A number of people have said we would like to have this; we really want to be able to clear gold, silver and other precious metals,” he told reporters in Mumbai.

“As an exchange... we want to partner with the market.”

Talks would include the London Bullion Market Association (LMBA) and the World Gold Council, he said.

“We have the technology to do it. We’re in discussions right now. But if we do it, it would be for launch next year.”

Jones did not provide a specific timeline and said it would depend on the regulatory environment.

The LME has previously offered gold and silver contacts, most recently in the 1980s.

It stopped providing forward curves late last year, when increased regulatory scrutiny of the way banks provide data to determine financial benchmarks made bullion market makers less inclined to participate in price-setting processes.

LME, part of Hong Kong Exchanges and Clearing Ltd, is currently holding roadshows promoting the benefits of hedging to the Indian market. (Additional reporting by Jan Harvey in London; editing by Jason Neely)

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