In this video I talk to Daniel March about about the inner workings of the LBMA Bullion Banks in London. Daniel has worked in the bullion operations of JP Morgan, HSBC and ICBC Standard in London, and offers a unique perspective on the London market.
The interview is 54 minutes long; the topics are clickable as follows:
0:00 Introduction
0:58 Daniel's background in the industry
4:05 Explanation of gold credit and unallocated metal
6:54 London settlement, netting and collateral
11:40 Precious metals clearing: LPMCL and AURUM
15:17 LPMCL member banks, infrastructural barriers to entry
18:14 GLD allocation process, unallocated gold, HSBC and APs
20:19 Bank of England’s role as the Lender of Last Resort
22:22 When and why did LBMA unallocated ‘metal’ appear
27:08 HSBC & JP Morgan, exit of bullion banks, effect on liquidity
30:05 LBMA Trade and Vault Reporting - Lack of Transparency
34:34 Basel III and Required Stable Funding (RSF) in 2021
36:39 Exchange for Physical (EFP) and the EFP blowups of 2020
42:59 ETF silver inventories and the LBMA vaults
44:23 A discussion of gold Consignment Stocks
46:23 The Drivers of and Outlook for the Gold Price
50:07 Asian gold market trends, potential PBoC gold buying
Comments
Log in or sign up to join the conversation.