SEATTLE (Scrap Monster): Further to announcing closer partnership with the London Metal Exchange (LME), the Moscow Exchange now plans to provide further boost to its gold trading activities.
The recent association with the LME allows participants to trade spot gold at London prices by using its own clearing systems, thus making trading easier. The exchange plans to enter into a similar partnership with Shanghai Gold Exchange, which it expects to be finalized possibly by next year.
Although Russia is the world’s second largest producer of mined gold, next only to China, the gold trading volumes in the country has been much lower when compared with other key exchanges such as London or New York. The efforts to develop gold trading have resulted in significant surge in gold trading volumes during the initial nine-month period of the current year. It must be noted that the trading during this period totalled around 170 billion rubles.
Igor Marich, Managing Director for Sales and Business Development, The Moscow Exchange said that it wants to have the Russian gold market a marketplace for everyone. It anticipates impressive growth in 2022. The proposal to cancel value-added tax on retail gold is under consideration, which in turn could boost trading, he added.