WGC considers launch of new London exchange - FT

FXStreet (Mumbai) - The gold industry’s leading trade body and half a dozen banks have agreed to explore the idea of establishing an exchange in London as the existing market faces greater regulation.

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.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.