Banks discuss shifts to how London gold traded for 300 years

While bullion trading happens with a set contract on an exchange in most places, London is the exception because the market functions entirely over-the-counter with banks making custom deals on price, delivery times and size. Now, a group of lenders, including Goldman Sachs Group Inc. and Morgan Stanley, are assessing whether it makes sense to introduce standardized central clearing and listed derivatives, according to a letter obtained by Bloomberg to the London Bullion Market Association.

Banks discuss shifts to how London gold traded for 300 years