Reuters: CME developing European gold futures contract

Section:

Is it to increase deliveries, as the sources tell Reuters, or just to paperize London more?

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By Clara Denina and Jan Harvey
Reuters
Thursday, May 21, 2015

LONDON -- The Chicago Mercantile Exchange is developing a European gold futures contract to serve customers in London, three sources familiar with matter said, which could present a direct challenge to London's traditional cash market.

The contract would mirror existing futures traded on CME's New York COMEX platform, which has a 100-ounce contract size and typically trades volumes of between 15 million and 20 million ounces daily.

That is the world's most liquid gold contract, essentially setting the benchmark for bullion futures globally.

"The CME has been working on a loco (deliverable in) London futures contract for a while," one source familiar with the matter said. "Comex futures are deliverable at Comex warehouses, but instead with London futures you would take delivery at your London vault. Potentially they would see a lot more futures being delivered if customers could have London gold." ...

... For the remainder of the report:

http://uk.reuters.com/article/2015/05/21/uk-gold-futures-cme-idUKKBN0O61...



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