Basel 3 is on course to regulate the LBMA out of existence. And with it will go all the associated arbitrage business and position-taking on Comex,
because most bullion bank trading desks will cease to exist. The only supply to buy-side speculators of gold and silver contracts will be producer hedging.
In recent months there has been some limited commentary concerning the introduction of Basel 3 regulations and the implications for precious metals trading.
These new regulations are scheduled to be introduced for European banks at the end of June only seven weeks’ time and in the UK from 1 January next, affecting all LBMA member banks.