EXCHANGE - China launches market-making system in interbank gold inquiry market

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Meimei Qinmeimei.qin@fastmarkets.com+442072642479

London 13/01/2016 - China has rolled out a market-making system that facilitates interbank gold trading, the Shanghai Gold Exchange said.

The mechanism, operated by the Shanghai Gold Exchange and the China Foreign Exchange Trading System, aims to boost liquidity of interbank gold trading and promote market making, the exchange said in a statement posted on its official website on Tuesday.

It also confirmed 10 banks as 'official' market makers - ICBC, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, China CITIC Bank, China Merchants Bank, Industrial Bank Co, Bank of Ningbo and ANZ (China). Another six banks were listed as 'trial' market makers.

All the other unlisted banks or organisations are not permitted to make public price offerings in the interbank gold inquiry market, it added.

The SGE is due to launch a yuan-denominated gold 'fix' in April this year, a move aimed at giving consumers and producers more influence over global pricing.

 

(Additional report by Ian Walker, editing by Mark Shaw)



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