The Moscow stock exchange plans to transport precious metals from production companies, keep them in its own stores and deliver to the buyer the next day.
MOSCOW(BullionStreet): For the first time in Russia's history, physical precious metals would be traded to boost liquidity in the market and attract more participants.
Mikhail Orlenko, director of the commodity market of the Moscow exchange said the exchange is going to start trading gold and silver by the end of this year, and platinum and palladium in 2014.
The Moscow stock exchange plans to transport precious metals from production companies, keep them in its own stores and deliver to the buyer the next day.
Spot metal trading will be based on the platform of the existing foreign exchange market. Credit institutions licensed to conduct operations with precious metals and non-banking professional brokers will be the main players on the market.
Orlenko said Russia's commodity market is not transparent and its trade volume is still significantly lagging despite Russia being a large gold producer and exporter.
Russia has so far only been trading futures on gold and silver, not dealing with real metals. Gold has been occasionally sold on the over-the-counter market and the only benchmark for price was the Central bank’s quotations, Now gold will get the market price in rubles.
courtesy of bullionstreet
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