Intercontinental Exchange Inc. has launched new gold futures contracts in London, aiming to expand trading in the over-the-counter market dominated by global banks. The US-based exchange operator began offering daily 100-ounce gold futures this week, aligning contracts with the large-format bars that underpin London spot trading. The exchange also launched daily futures for silver, platinum, and palladium.
Despite the dominance of a small network of banks and brokerages in the London bullion market, ICE's move represents the latest effort to introduce exchange-traded contracts to a traditionally opaque sector. JPMorgan Chase & Co. and HSBC Holdings Plc remain key players in the region. This initiative follows previous attempts, including the London Metal Exchange's 2017 gold contracts backed by Goldman Sachs Group Inc. and Societe Generale SA, which were discontinued in 2022 after volumes declined.
ICE already runs daily bullion price-setting auctions in London and previously launched associated futures in 2016. CME Group Inc. also established a contract in 2020 to support London's 100-ounce bar trading, though it similarly struggled to gain traction. The launch signals continued industry interest in modernizing access to precious metals trading beyond traditional OTC channels.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing