LME to launch gold and silver trading contract next year

London Metal Exchange (LME) on Thursday said it is looking at starting gold and silver trading contracts on its trading platform next year. "We are looking to start trading in precious metals for the first time and introduce new measures to attract more traders. We have strong clearing house and technology for launching the new contract and discussions are on with the London Bullion market to launch the same hopefully next year," LME CEO Garry Jones told reporters on the sidelines of its roadshow here.

The exchange is also eyeing to launch various contracts including more ferrous products and regional premium contracts. The exchange will be launching new aluminium contract and new ferrous suite contract on November 23. The new scrap and rebar futures will complete the value chain for long steel products.

"The LME has always had a strong relationship with the metals industry in India, which is a top-priority region for us. The exchange hopes to enhance participation and widen its customer base. "We are meeting a range of market participants in India and helping them to become more familiar with metals price risk management tools," he said.

The India roadshow is part of a strategic push into India as base metals consumption increases in the region and more Indian metals companies look to manage their price risk, the exchange said. The LME, part of the Hong Kong-based HKEx Group, has more than 80 percent of global nonferrous metals business is conducted on its trading platforms. Metals traded on the platforms include aluminium, copper, tin, nickel, zinc, lead, molybdenum, cobalt and steel billet.

In 2014, about 4 billion metric tonnes of metal valued at USD 14.9 trillion was traded via the LME.