(Clarifies Bank of China International name in first paragraph, CME Group name in final para)
By Jan Harvey
LONDON, March 2 (Reuters) - Four more financial firms, including Bank of China International, have agreed to participate as clearing members in the London Metal Exchange’s new suite of precious metals contracts when they launch on June 5, the LME said on Thursday.
Bank of China International, Commerzbank , Marex Financial and Macquarie Bank have agreed to take part in the LMEprecious suite of gold products, including spot, futures and options contracts, that the LME announced in August.
The LME is already partnering LMEprecious with the World Gold Council, proprietary trader OSTC, and five banks - ICBC Standard Bank, Morgan Stanley, Natixis , Goldman Sachs and Societe Generale.
The exchange has a 50:50 revenue-sharing agreement with EOS Precious Metals, formed by these partners.
Bank of China International, Commerzbank, Marex Financial and Macquarie are not part of EOS.
All eight banks, plus Marex, intend to act as clearing members when the contracts launch in June.
“The presence of strong, large Chinese financial institutions is hugely important as part of the LMEprecious business case,” the LME’s interim Chief Executive Matthew Chamberlain said.
“We’ve always said this is about strengthening London as the global precious metals centre, it’s about working sympathetically with the over-the-counter market, and we’re really pleased to see those names.”
The LME said it is in advanced talks with other potential clearing members ahead of the launch.
Each clearing member will have to provide a minimum of $1 million to the LMEprecious default fund.
“The fact that people are willing to meet that additional default fund contribution further (validates) the potential of LMEprecious,” Chamberlain said.
The exchange also outlined fees which will be reviewed annually along with other contracts, but for LMEprecious the first review will not be until December 2018.
For contracts ranging from spot to monthly delivery on the LMESelect platform, the LME will charge a transaction fee of between 40 and 50 U.S. cents to members trading and clearing in-house business, depending on the term of the contract.
Clients of members will be charged a maximum of 90 U.S. cents.
There is a 25 percent discount on fees for business conducted over the telephone, the LME said, adding there were reductions for tom/next -- buying tomorrow and selling the day after.
LMEprecious joins a raft of new products in the gold market, with InterContinental Exchange, which runs the LBMA Gold Price benchmark, and CME Group also launching new contracts this year. (Additional reporting by Pratima Desai; Editing by Dale Hudson)