Exclusive-Banks prepare to scrap LME gold and silver contracts, sources say
A group of banks that partnered with the London Metal Exchange (LME) to launch gold and silver futures in 2017 is preparing to abandon the project after hoped-for volumes did not materialise, three sources with direct knowledge of the matter said.
“Such a move would end an attempt by the LME, which dominates industrial metals trading, to capture part of London’s bullion market, which is the world’s largest with gold worth some $17 trillion changing hands last year.
The LME launched the contracts with partners including Goldman Sachs and Morgan Stanley, who agreed to promote trade in them in return for 50% of revenues generated.”
I would think any chance of it succeeding was quashed by Basel III.