Swiss bank enters London Bullion Market Association as market maker
Credit Suisse, the famous Swiss bank, has been reclassified as a spot and options market maker at the London Bullion Market Association, the gold market said today. This brings the total number of market making members at the LBMA to ten.
The market-making responsibility applies to both gold spot and options contracts, and is effective starting on Thursday, August 19.
“The market makers are a mass provider of liquidity,” Stewart Murray, the LBMA’s chief executive officer, told the Bloomberg News service today. “If there was massive buying or selling, it’s the market makers in the main that absorb that. Given that can happen, it’s better to have more rather than less.”
The LBMA is an important market and provider of liquidity in the global gold trade, with most of the members representing the world’s largest commercial and central banks.
The LBMA shouldn’t be confused with the London Metal Exchange, a futures exchange which mostly deals with base metals like copper, zinc and iron.
The price of gold on the LBMA rose today to $1,233.50 per troy ounce.
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