Intercontinental Exchange, an operator of global exchanges and clearing houses and provider of data and listings services, reports
“We are pleased to introduce central clearing for the gold auction underlying the benchmark LBMA Gold Price,” said Finbarr Hutcheson, President, ICE Benchmark Administration. “The number of participants in the LBMA Gold Price has grown from four to 13 since we launched last year and we continue to see strong demand from other firms, which we believe the introduction of central clearing will further support. This growth demonstrates the continued importance of the LBMA Gold Price and its international role as the world’s most trusted benchmark price for gold.”
ICE says central clearing will be enabled by a new physically settled, Loco London gold daily futures contract that will trade on ICE Futures US (IFUS). It is designed to complement the existing London market, being based on the LBMA Good Delivery Rules.
The ICE Gold Daily Future will be a physically settled, daily contract, traded in one cent ($0.01) increments, that calls for delivery of one hundred fine troy ounces of unallocated Loco London gold of quality satisfying the LBMA Good Delivery Rules.