July 17, 2017 / 12:55 PM / a month ago

80 tonnes of gold traded on LMEprecious in first week

LONDON, July 17 (Reuters) - The London Metal Exchange said on Monday that 2.6 million ounces (79.6 tonnes) of gold and 12.8 million ounces (397.5 tonnes) of silver was traded through its LMEprecious contracts in their first week of trading.

LMEprecious, which includes spot, daily and monthly futures, launched on July 10 with backers including banks Goldman Sachs and Morgan Stanley who committed to provide liquidity as part of a 50:50 revenue-sharing deal with the LME.

The contracts aim to capitalise on increasing regulatory scrutiny that is raising costs for the over-the-counter (OTC) deals between banks and brokers that dominate London's gold trade.

A typical OTC trade is around 5,000-10,000 ounces.

The LME said open interest on its gold contracts reached 9,380 lots in the first week and 2,253 lots for silver. Each lot is 100 ounces. (Reporting by Peter Hobson; Editing by Greg Mahlich)

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