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LCH.Clearnet and LME provide over-the-counter (OTC) post-trade services for gold traded on London’s bullion market.
Gold continues to be negotiated and traded in OTC form, but participants can now benefit from efficient matching and registration technologies and the central clearing of trades.
The introduction of clearing to the wholesale London gold market provides the potential to minimise counter-party risk and create straight-through-processing efficiencies for market participants.
Clearing is available for OTC gold forward contracts for daily prompt dates from TOM out to 10 years. This new service is aimed primarily at existing LCH.Clearnet and LBMA Clearing Members many of whom are already LME members and LMEsmart users.
Since the launch of OTC gold clearing, an increasing number of precious metals clearing members are now able to clear OTC gold forward contracts.
Market participants trading gold who wish to benefit from the clearing of bilateral trades offered by LCH.Clearnet can submit trades via LME’s trade capture system, LMEsmart.
This offers market participants the ability to take advantage of:
- Reduced counter party risk
- Margin offsets with other metal contracts listed on the LME
- Improved collateral management
- Increased liquidity
- Lower operational costs
Additional precious metals services include:
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