Banks Have Moved Gold Trading From New York to London, LBMA Says
- Price dislocation has forced change in hedging strategies
- Group is looking at ways to make OTC market more efficient
Photographer: Lisi Niesner/Bloomberg
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An extreme dislocation in the global gold market earlier this year spurred banks to shift some positions out of New York futures and into the London over-the-counter market, according to a leading figure in the industry.
Market participants’ changing behavior is reflected in gold trading volumes in the two hubs, said London Bullion Market Association Chief Executive Officer Ruth Crowell. The amount of gold traded in the U.K.’s capital surpassed the U.S. futures market in recent months, she said.