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