London Bullion permits NCDEX to use its good delivery list

The National Commodities and Derivatives Exchange (NCDEX) has obtained permission from London Bullion Market Association (LBMA) for using 'London Good Delivery List' copyright Ipsofacto for gold and silver.

"This makes gold and silver refined at the LBMA approved refineries good deliveries at the platform of NCDEX," Narendra Gupta, chief business officer, NCDEX said.

The ipsofacto permission makes NCDEX the first exchange among the four having national status in the country to have international affiliation.

NCDEX is expected to commence futures trading by mid-November armed with delivery specifications of global standards.

"London Good Delivery List", is the list of Acceptable Refiners of gold and silver bars, who meet the LBMA prescribed standards.

The list has been developed and is maintained by LBMA in order to facilitate the international distribution and acceptability on technical grounds of standard bars produced by Refiners.

Since India imports most of its gold and silver requirements in absence of domestic mine production, international standard of good deliveries become imperative for an exchange aspiring to draw global fund managers and bullion brokers and dealers.

India, the world's largest gold market, imports more than two-thirds of around 800 tonnes of gold worth about $8.5 billion that it consumes each year.

The Good Delivery List is the copyright of the LBMA and the reproduction and dissemination of the List is permitted only with the express permission of LBMA and acknowledging copyright.

Standard bars are bars of approximately 400 fine ounces troy for gold and approximately 1000 ounces troy for silver.

Bars are listed at the discretion of the Management Committee of the Association which reserves the right to make any investigations into an application which it deems appropriate.

The London bullion market is the hub of global OTC precious metals trading, providing an unparalleled range of products and services for its customers, including central banks, consumers, producers and investors.

Banks, fabricators, refiners, shippers and brokers - all sectors of the market are represented in its broad-based membership.

Through its staff and its committees, it works to ensure that London continues to meet the evolving needs of the global bullion market.