LCH.Clearnet Group's move is another step toward the remonetization of the metal
U.K.-based clearinghouse LCH.Clearnet Group Ltd. said Tuesday that it will accept
gold as collateral for margin cover purposes starting Aug. 28.
The clearinghouse said the option would be available for members clearing over-the-counter
precious metals forward contracts or
precious metals contracts on the Hong Kong Mercantile Exchange.
The clearinghouse limited the amount of
gold that could be used as collateral to no more than 40% of the total margin cover requirement for a member across all products and at a maximum of $200 million, or roughly 130,000 troy ounces, per member group.
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