Citigroup expands London bullion role with clearing bank membership

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Citigroup London bullion clearing

Highlights

Citigroup joins JPMorgan, UBS, ICBC and HSBC as a clearing member of the London precious metals market, ending years of exclusivity.
Citi's admission to the LPMCL provides direct access to the world's largest bullion market, where $1.4 trillion in gold was held at vaults as of end May.
Additional clearing members like Citi are expected to boost market liquidity, as gold and silver prices remain volatile following record highs in late January.

Clearing access opens after long application

As reported by Financial Times, Citigroup is set to join the group of banks permitted to clear physical gold and silver in London, ending years in which JPMorgan, UBS, ICBC and HSBC were the only clearing members in the market.

The change gives Citi a direct role in the clearing and settlement infrastructure of the world’s largest over-the-counter bullion market, where other banks and brokers have often relied on the existing clearing members to participate. Citi’s head of commodities José Cogolludo says the step is a natural extension of the bank’s longstanding precious metals business.

LPMCL, which is owned by its clearing member banks, has faced criticism for opacity and for previously lacking a clear framework for admitting new members. Rules around new membership were introduced in 2018, and independent chair James Cressy says in a statement that Citi’s admission demonstrates the openness and transparency of the process.

Market structure and liquidity implications

London remains the most liquid market for physical gold trading and serves as the global benchmark for bullion pricing. Its position is supported by a network of vaults, including at the Bank of England and private institutions, which held about $1.4 trillion in gold at the end of May.

The market also oversees the standard for good delivery gold through rules on quality and provenance administered by the London Bullion Market Association. Citi’s arrival comes as gold and silver prices remain highly volatile after both metals surged to record highs in late January and then fell over the past six months.

The bullion rally from 2023 to 2025 has already pushed banks and trading houses to expand metals trading operations and open vaults. Former LBMA chair Paul Fisher said last October that additional clearing members could benefit the market by adding liquidity, while acknowledging longstanding concerns that the system functioned like a closed club.

Our earlier coverage of Barrick Gold (ABX) focused on the miner’s share price staying under pressure as it traded below key moving averages, despite mixed momentum signals. The piece highlighted a consolidation range around C$51.71–C$55.89 and noted that, in the absence of fresh catalysts, near-term direction would likely depend on a breakout from that band.

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