Thursday, June 26, 2014

Singapore Stock Exchange to Launch Physical Gold Contract in September

The world’s first exchange-traded, gold contract will be created for the trade, clearing and physical delivery of the precious metal in Singapore. The contract will be the first wholesale 25 kilobar gold contract to be offered worldwide. The Singapore contract will have no price limits.

The World Gold Council, Singapore Bullion Market Association, SGX and four banks - JP Morgan, Scotia Bank, Standard Bank and Standard Chartered - are supporting the launch.

According to SGX President Muthukrishnan Ramaswami, he said that the launch "will enable the trading and clearing of the Singapore kilobar gold contract and establish a fully transparent price discovery mechanism for gold in this region".

 “This is a timely development given the increased requirements for reference prices to be transparent,” Trade and Industry Minister Lim Hng Kiang said in a speech at the London Bullion Market Association’s conference yesterday.

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