LONDON (Scrap Register): The Intercontinental Exchange (ICE) is planning to launch London gold daily futures contract in February 2017, in order to gain bugger chunk and increase transparency of a market that is seen as a key global bullion trading.
London Metal Exchange (LME) is also planning to launch spot and futures contract for gold and silver in 2017. ICE said the new daily futures contract would be physically settled, traded in one cent increments and call for the delivery of 100 troy ounces of the metal.
The London gold auction currently has 13 authorized participants which incresed from 4 last year. The auction takes place twice daily and sets the benchmark LBMA gold price.
ICE's plan also comes shortly after the LBMA last week named Cinnober subsidiary Boat as the service provider for its new trade reporting platform, as it moves to boost transparency in the $5-trillion-a-year London gold market.