Every business day in London, 5 banks meet to set the price of gold in a
ritual that dates back to 1919. Now, dealers & economists say knowledge
gleaned on those calls could give some traders an unfair advantage when buying
and selling the precious metal.
The UK Financial Conduct Authority is scrutinising how prices are set in
the $ 20 trillion gold market, according to a person with knowledge of the
review who asked not to be identified because the matter is not public.
The London fix, the benchmark rate used by mining companies, jewelers
& central banks to buy, sell and value the metal, is published twice daily
after a telephone call involving Barclays, Deutsche Bank, Bank of Nova Scotia,
HSBC Holdings & Societe Generale.
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