CME to launch London spot gold, silver futures for spot spread

The CME will introduce a precious metals spot spread to enable traders to manage risk between its Comex gold and silver futures and the London spot markets of the two metals, it said.

This will be facilitated by the introduction of London spot gold and London spot silver futures contracts, which will begin trading on January 9, 2017, the exchange said at a press conference here on Tuesday November 1.

“Our new contracts will provide traders with streamlined access to the London spot market via the safety and transparency of cleared, exchange-traded futures contracts,” Miguel Vias, CME group head of precious metals, said.

These Comex-listed futures contracts will represent unallocated London gold or silver, will be physically settled and will be 100 oz in size.

London’s gold market is becoming increasingly competitive – earlier this year, the London Metal Exchange (LME) said it was planning to launch spot and futures gold and silver contracts in the first half of 2017. Intercontinental Exchange (ICE) will also introduce a London gold daily futures contract in February next year, it said.

(Editing by Mark Shaw)