SINGAPORE, June 16 (Xinhua) -- Singapore Exchange (SGX) will establish an over-the-counter (OTC) gold clearing system for Loco Singapore by the end of 2026, in a move aimed at strengthening Singapore's position as a regional gold trading hub.
Speaking at the Asia-Pacific Precious Metals Conference on Monday, Deputy Prime Minister Gan Kim Yong said the clearing system would serve as a foundational piece of market infrastructure for the country's growing gold market.
The platform is expected to streamline trade processing, enhance transparency and support more efficient clearing and settlement of gold transactions, giving market participants greater confidence to trade in Singapore.
The system will support both large gold bars and kilobars, enabling standardized settlement during Asian trading hours.
Interbank trading is expected to build up from 2027, with six bullion banks -- DBS, Deutsche Bank, ICBC Standard Bank, J.P. Morgan, OCBC and UOB -- set to sign a memorandum of understanding with SGX to participate as clearing members.
Gan said the banks would work with SGX to develop the Loco Singapore gold market, deepen price discovery and increase trading activity. ■