ExclusiveHong Kong to launch long-awaited gold clearing and settlement system next week: sources
The city plans to process its first gold settlement on Tuesday, according to those familiar with the matter
The authorities plan to process the first gold settlement through the new system on Tuesday, one source told the South China Morning Post.
“We have seen a lot of gold leave London, the US and Europe, and large bars have been flown into Asia in anticipation of this,” the source said. “It could create some volatilities in the London gold market in the short term as the market sort of rebalances.”
Hong Kong could move from being a gold-price taker to a price maker if the city gains more subscriptions from global and local banks, according to the source.
Another source, who is an executive of one of the banks that will participate in the clearing system, told the SCMP that the bank was preparing to start making deals with gold traders next week.
“The preparatory work has entered its final stage and trial operation of the clearing system is scheduled to commence within this year to ensure that the services of the clearing system remain attractive and are operationally stable,” a spokeswoman for the Financial Services and the Treasury Bureau (FSTB) said in a statement to the SCMP.
Hong Kong Precious Metals Central Clearing Company, a wholly-owned government company, would work with market participants to set rules for the gold clearing system, she said.