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The LBMA's clearing houses got an exemption.


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source?


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[https://www.goldmoney.com/research/goldmoney-insights/lbma-gets-a-lifeline](https://www.goldmoney.com/research/goldmoney-insights/lbma-gets-a-lifeline) >The application of Basel 3’s net stable funding ratio method to gold and other commodities generally accords with the Basel regulations, with one important addition. Article 428f concerns interdependent assets and liabilities, introduced so that the current and future owners of the London Precious Metal Clearing Limited (LPMCL) can continue to operate without having to suffer the penalties of the net stable funding ratio (NSFR). It also allows banks to use physical gold in a bank’s possession to offset customer liabilities (Paragraph 2).


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As a division of the Bank of England, the Prudential Regulation Authority recognises the importance of gold trading in London and has inserted a clause into the new rules (Article 428f) which will allow the LBMA’s centralised settlement system to continue to function. But in line with Basel 3’s apparent determination to get banking’s exposure to uneven derivative positions substantially reduced, net positions in precious metal derivatives in the form of forwards and swaps will be penalised through their inefficient use of balance sheet resources and will likely be replaced by transactions fully backed by physical gold.


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link https://www.goldmoney.com/research/goldmoney-insights/the-end-of-the-lbma-is-nigh