London Gold Trade Probably Won’t Move to Exchange, LBMA Says
This article is for subscribers only.
Bullion trading in London isn’t likely to move to an exchange because it would increase costs and reduce liquidity, according to the industry’s trade association.
The London Bullion Market Association on Monday said it has commissioned Ernst & Young LLP to conduct a study and prepare recommendations on how to develop the market, including looking at moving over-the-counter trading to an exchange. While such a change is unlikely, there may be more regular transaction reporting and a return of publishing gold forward offered rates and the forward curve, said Ruth Crowell, the LBMA’s chief executive.