ICBC Standard Bank has joined London Precious Metals Clearing Ltd (LPMCL), the system that manages the clearing of gold, silver, platinum and palladium, the LPMCL said on Wednesday in a statement.
ICBC Standard Bank becomes only the sixth member of LPMCL and the first banking group to be admitted since 2005. The other members of LPMCL are Barclays, HSBC, JP Morgan, the Bank of Nova Scotia-ScotiaMocatta and UBS AG.
LPMCL operates a central electronic metal clearing hub with deals between parties throughout the world settled and cleared in London – most of the world’s over-the-counter (OTC) gold and silver trading is cleared through the system.
The London bullion market clearing banks provide clients with the settlement of gold and silver transfers. Ultimately, each clearer must have access to reserves of physical metal and provides an array of services tailored to each client’s specific needs, including intermediating credit and providing credit facilities.
(Editing by Mark Shaw)