Global Market: Citi joins London's bullion clearing network in major precious metals expansion

Citi has become the fifth bank to clear transactions in London's over-the-counter gold market, marking a significant expansion of its precious metals business and strengthening its role in the global bullion trade, according to a company announcement reported by Reuters.

The move expands the small clearing network that supports London's bullion market, where around $160 billion worth of precious metals transactions are conducted daily. By joining the clearing system, Citi will play a direct role in the settlement infrastructure that underpins global trading in gold and other precious metals.

The bank's entry is also notable as it is the first addition to the London bullion clearing group in a decade, reflecting progress in reforms designed to make the market more accessible to new participants, Reuters reported.


Citi joins existing clearing members HSBC, ICBC Standard Bank, JPMorgan and UBS within the London Precious Metals Clearing Limited (LPMCL) network.

According to Citi, its admission as a clearing member of LPMCL enables it to provide Loco London settlement services for gold, silver, platinum and palladium.

LPMCL members use unallocated precious metals held in their accounts to settle transactions among themselves and on behalf of clients. The clearing network processes more than 20 million ounces of gold on a net basis each day, on average.

Reuters reported that 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. ICBC Standard Bank was the last institution admitted to the clearing network a decade ago.

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.

According to Reuters, 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.

London bullion clearing members maintain vaulting facilities in the city, either through their own storage infrastructure or by using secure third-party storage providers. These facilities are used to process, store and safeguard precious metals for both the banks and their clients requiring custodial services.