On April 5, an under the radar piece of news came over the wires that will have a strong influence in China's plans to set their own spot prices in both gold and silver soon through the Shanghai Gold Exchange. This is because the London Bullion Metals Association (LBMA) has approved China's largest bank, and in fact the world's largest bank, the ICBC, to become a new market maker with the institution.
ICBC Standard Bank, China and the world’s largest bank, has been reclassified as a spot Market Making Member of the London Bullion Market Association (LBMA) with effect from today according to a note posted on the LBMA website last night at 2100 GMT.
Submitted by Mark O’Byrne:
“In order to qualify as a LBMA Market Maker, a company must offer two-way quotations in both gold and silver to the other Market Makers throughout the London business day.
Reclassification is the responsibility of the LBMA Management Committee. In deciding on the issue of reclassification, the Committee takes account of the views of the other Market Makers on the performance of the candidate company during an approximately three month probationary period.
Total LBMA membership stands at 146, consisting of 13 Market Making Members, 67 Ordinary Members and 66 Associates Members. The membership list can be found on the LBMA’s website.”
ICBC becoming a new LBMA market maker in the gold market, while expected, is an important development and again shows China’s intent with regard to becoming a key player in the global gold market. - Silver Doctors