London 18/05/2016 - Partnerships between exchanges may be of benefit to gold trading in London, Matthew Chamberlain, head of business development at the LME, said during Platinum Week here.
"We don't need a one-size-fits-all model," he said on Wednesday. "What we need is a set of linked but divergent prices, a reciprocal access-to-pricing mechanism."
He does not see any challenges to London's primacy in gold trading in the near future even after China, the world's biggest producer and consumer of bullion, rolled out a new yuan-denominated gold-pricing fix last month as it seeks to establish greater influence in international commodities pricing.
But while London still has natural advantages for gold trading, it must do more to improve its infrastructure to remain at the centre of trading, Chamberlain added.
Moving fixes onto exchanges is a step in the right direction for London trading but "there is still more that we can do to improve it", he said.
Major changes are afoot in the London gold market, with the London Bullion Market Association (LBMA) seeking to improve gold trading via a series of reforms.
(Editing by Mark Shaw)