The World Gold Council (WGC), a group consisting of 19 gold miners, and at least five banks are participating in initial discussions, according to people familiar with the matter.
That could see a move from London’s bilateral over-the-counter gold market, which has been criticised for its lack of transparency, to a centrally cleared market.
The WGC has hired a number of consultants and spent the past six months pitching a business case for banks to consider the alternative trading infrastructure.
WGC said in a statement, “As the market development organisation for the gold industry, our overriding aim is to encourage a transparent, efficient and liquid gold market,”
“We are constantly exploring potential market development initiatives, so it is in the normal course of business that we are engaged in discussions with a number of individuals and organisations regarding the operation of the global gold market.”
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