LCH.Clearnet will start accepting gold as collateral, Financial Times reports. The service is being offered to customers that have signed up to clear over-the-counter gold bullion and gold contracts on the Hong Kong Mercantile Exchange.
The World Gold Council is supporting the initiative by the Anglo-French clearinghouse. The move by LCH follows similar steps taken by other exchanges and banks, including CME Group, to boost the use of gold as an acceptable deposit.
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