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INTL FCStone Is Now A Direct Participant To LBMA Gold Auction

Kitco News

Fortune 500 financial services firm, INTL FCStone Inc. (NASDAQ:INTL), announced that one of its London-based subsidiaries is now a Direct Participant to the London Bullion Market Association (LBMA) Gold Auction. 

INTL FCStone Is Now A Direct Participant To LBMA Gold AuctionINTL FCStone Ltd's Precious Metals division has been approved to participate earlier in April, the company said in a press release.

“To be a Direct Participant of the LBMA Gold Auction is a major step for INTL FCStone,” said Barry Canham, global head of Precious Metals. “We are continually driving our business forward to improve our client offering and cementing our prominent position in the global bullion market.”

In order to be accepted as the Direct Participant, the Precious Metals division needed to meet a list of criteria, including a specific level of experience, ability to settle Loco London Gold and clear using the ICE Gold Daily Futures Contract.

INTL FCStone Ltd. is joining the ranks of nine other companies that are taking part in the auction process.

“ICE Benchmark Administration (IBA) introduced central clearing to the twice-daily London gold auction, removing the need for firms to have significant bilateral credit lines in place with each other to become a Direct Participant,” the press release said.

INTL FCStone Ltd. deals with mid-sized commercial clients and focuses on the development of specialized financial services in commodities, securities, global payments, foreign exchange and other markets.

In other recent LBMA-related stories, Kitco News reported that on April 11 gold buyers, settling contracts using the PM Gold Price, got a great deal, as the benchmark ended up being set almost $15 dollars below where spot prices were trading at the time.

The PM Gold Price, which comes out around 10:30 a.m. showed a benchmark at $1,252.90 an ounce; however at the time, spot gold prices were trading around $1,267 an ounce. 

According to the LBMA, there are currently 10 firms providing bids during the electronic auction: Bank of China; Bank of Communications; Goldman Sachs; HSBC Bank USA NA; Industrial and Commercial Bank of China (ICBC); INTL FCStone; JPMorgan Chase Bank, N.A. London Branch; Morgan Stanley; The Bank of Nova Scotia – ScotiaMocatta; and Toronto-Dominion Bank.


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