Citi has been officially admitted as a clearing member of London Precious Metals Clearing Limited (LPMCL), becoming the fifth bank to do so and marking a significant expansion of its precious metals business. According to the latest announcement from Citi and LPMCL, this move strengthens Citi's role in the global bullion trade and represents the first addition to the London bullion clearing group in a decade. The bank will now offer Loco London settlement services for gold, silver, platinum, and palladium, expanding the small clearing network that supports London's bullion market. As reported by Reuters, Citi joins existing clearing members HSBC, ICBC Standard Bank, JPMorgan and UBS within the London Precious Metals Clearing Limited network.
The clearing network handles approximately $160 billion in daily transactions, with the system processing more than 20 million ounces of gold on a net basis each day on average. As reported by Reuters, Citi joins existing clearing members HSBC, ICBC Standard Bank, JPMorgan and UBS within the London Precious Metals Clearing Limited (LPMCL) network. LPMCL members use unallocated precious metals held in their accounts to settle transactions among themselves and on behalf of clients. The expansion also marks the first addition to the clearing group in a decade, with ICBC Standard Bank being the last new member to join 10 years ago.
According to Citi, the admission represents a natural extension of Citi's long-standing precious metals business and aligns well with their operating model and commitment to supporting robust, efficient market infrastructure. As reported by Business Wire, José Cogolludo, Head of Commodities at Citi, stated that "This role aligns well with our operating model and our commitment to supporting robust, efficient market infrastructure. We look forward to contributing to the continued strength and resilience of the London bullion market." The move marks a major expansion of Citi Commodities' global precious metals business as it delivers a more comprehensive product suite to its global client base, leveraging Citi's position as a preeminent banking partner for institutions with cross-border needs and global leader in wealth management.
According to Reuters, Citi's approval represents LPMCL's first major expansion since the organization began restructuring eight years ago as part of broader efforts to modernize the institutions supporting London's bullion market. The restructuring initiative aimed to simplify membership requirements and improve governance transparency to encourage greater participation. As part of these reforms, independent board member James Cressy was appointed chairman in October. LPMCL said Citi's admission highlights the effectiveness of its revised membership process, demonstrating that the clearing and settlement framework for the world's largest over-the-counter precious metals market is becoming more open to new entrants. As reported by Business Wire, James Cressy, Chair of LPMCL, noted that "The addition of Citi as a clearing member of LPMCL demonstrates the openness and transparency of our membership process, allowing new entrants to join and participate in the clearing and settlement of the predominate global over the counter precious metals market."
