LME to End Gold and Silver Contracts After 5 Years on Low Volume – BNN Bloomberg

(Bloomberg) — The London Metal Exchange will abandon its attempt to break into precious-metal trading after just five years, citing low trading volumes in its gold and silver contracts.

The LME — the world’s biggest exchange for industrial metals — partnered with banks including Goldman Sachs Group Inc and Morgan Stanley in 2017 to launch the contracts in a move to capture part of London’s bullion market.

The LMEprecious service is expected to be withdrawn on or about July 11, the exchange said in a notice to members. It took the decision “following discussions with market participants, and in light of the low levels of trading activity within the LMEprecious market.”

London is one of the two major centers of precious-metals trading, where trillions of gold, silver and associated derivatives change hands each year. The LME’s project looked to move the trade onto an exchange comparable to the Comex in New York, providing more transparency over pricing.

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