The LBMA Strikes Back

124
Thu, Jan 28, 2016 - 8:35am

We were alerted on Tuesday to an interesting new development in the Physical Exchange Wars. While we all patiently await the arrival of the Allocated Bullion Exchange, the LBMA has clearly cast its lot and support behind something called Allocated Bullion Solutions. If this sounds fishy to you...well, you're not the only one.

Just a refresher...Allocated Bullion Exchange is the brain child of Tom Coughlin, CEO of Bullion Capital. This new exchange, which is still coming by the way, seeks to make the paper-based LBMA obsolete in the global "price discovery" process. We first brought ABX to your attention back in 2015 and you can learn more about it here: https://www.tfmetalsreport.com/podcast/6685/making-lbma-obsolete

The process of bringing this game-changing new exchange online has been daunting and delays have frustrated all of us. However, Tom has assured me that "2016 is going to be a big year" for ABX.

With this in mind, check out what our pal Ned Naylor-Leyland discovered earlier this week. In this month's edition of "The Alchemist", the LBMA's own magazine (and what a perfect name!), you'll find a lengthy introduction of a brand new exchange that is designed to help with the "wholesale physical markets" which are "broken". The article can be found on page 3 here: https://www.lbma.org.uk/assets/blog/alchemist_articles/Alch80Complete.pdf

Did you happen to catch the name of this new exchange...the one that the LBMA is so eager to publicize? It's called "Allocated Bullion Solutions"! Yep, that's right. Allocated Bullion Solutions versus Allocated Bullion Exchange. And the similarities don't stop there.

Below is a screenshot of the Bullion Capital platform that will likely be utilized within ABX. Take a good look:

Now compare that to this screenshot of the Allocated Bullion Solutions platform. Do you notice any similarities in color scheme and layout? I'm sure it's just a coincidence...

More details can be found at the Bullion Capital and ABX websites: https://www.bullioncapital.com/ & https://abx.com

And more details on the copycat ABS can be found here: https://www.allocatedbullion.sg

Here's the text of Ned's email from earlier:

I spotted an article in this months copy of LBMA rag The Alchemist entitled:

'Wholesale Physical Markets are broken'

https://www.lbma.org.uk/assets/blog/alchemist_articles/Alch80Complete.pdf

This piqued my interest (to say the least) seeing as it was in The Alchemist. Intrigued as to who the author Seamus Donogue is, we discovered that he is the principal of ABS (https://www.linkedin.com/in/seamus-donoghue-2504115a). Allocated Bullion Solutions. www.allocatedbullion.sg

Having dug about yesterday pm I can say with a good degree of confidence that ABS is the LBMA’s preferred version of the already developing, active and independent ABX. A brazen copy of the ABX model (including branding, imagery, the trading system etc) - except, crucially, as Seamus puts in his article:

'There would be no change in counterparties, clients, settlement processes or delivery locations'

Suddenly now when you google ABX you instead find ABS at the top of the search. The whole idea of ABX is that is it an anonymous allocated exchange that sits entirely outside the control of the LBMA, custody, settlement, etc.

I suspected that some attempt to block the impending disintermediation may be coming, as in April 2014 the Telegraph Business section mentioned that the LBMA were suddenly planning a modern electronic exchange to resolve the old-school nature of the Gold market. That Telegraph article came out a few short months after I first publicly discussed ABX/Bullion Capital and its potential for LBMA disintermediation on the Keiser Report.

As an extra aside, I particularly enjoyed Seamus' comment on Page 2:

'There are supply constraints in physical markets that do not exist in OTC markets...'

Ho Ho.

Ned

So, we'll see where this all heads from here. Clearly, the LBMA has recognized the threat that new platforms like the ABX pose and they are moving to squash the competition. Will they be successful? Well, I guess that remains to be seen. Hopefully, Tom will get his new exchange fully operational soon and we'll find out. In the meantime, understand and never forget that The Old Guard is fully invested in keeping/protecting their stranglehold on the global gold market. Anything that we can do to strike a blow to their efforts is a step in the right direction.

TF

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turd [at] tfmetalsreport [dot] com ()

  124 Comments

BIGNASTY
Jan 28, 2016 - 8:37am

furst

I am going to have a fine day! Keep stacking!

sengfarmer
Jan 28, 2016 - 8:42am

wake up

in at the top.

legacyelectric
Jan 28, 2016 - 8:43am

2

come on silver

oops 3rd...

Kuchek
Jan 28, 2016 - 8:48am

4th for Marchas

Keep stacking.

bookers126
Jan 28, 2016 - 8:52am

Not Again

Just saw GSR spiked for an instant to 79.51 about when silver dropped to 14.1 (it is back up to 14.40). Seems like a clear signal to let da boys know silver about to be slammed again so they can fix thing accordingly.

Jan 28, 2016 - 8:55am

Anyone on a futures trading platform?

Did the spike down in price appear on your screens? Or was it just an interruption on the retail feeds?

I ask because that spike could well be the warning shot, as we have seen before (as sharp Turdites already noted)... BUT it could also be stop running if the cartel wanted to hoover-up some longs prior to a rise to clean up their position... anyone who has gotten long silver in the last week and done well, then moved up their trailing stop, just got run. IF that spike down happened in the futures market, too.

Let us know what you saw, please...

Marchas45
Jan 28, 2016 - 9:06am

Boy Turd

Your to Early Today. Lol Keep Stacking

Lemming
Jan 28, 2016 - 9:15am

Bad News is Good News Once Again

Durable goods orders were down 5.1% against an expected -.6%. So the Stawk Mawket rockets up? Sheesh

So everyone was excited recently when when the Comex paper to gold ratio got to 500:1? If the silver supression continues to succeed it may take 500 ounces of silver to buy 1 oz of gold!

Sometimes I feel like Lemming in Wonderland...............

Barfly
Jan 28, 2016 - 9:16am

And I wonder.....

Where oh where did the LBMA get all those specs and development that ABX put their hearts and souls into? Hmmmmmm..... I wonder.....Agent Andy? Funny how he's always an inside man on all these projects that constantly get cock-blocked by the Cabal. Who writes his checks again? I'm sure he's going to release those screen shots any day now.

Lemming
Jan 28, 2016 - 9:18am

Bookers & Pining Nailed It!

Silver & Gold just collapsed.........

Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
10/16 8:30 ET Retail Sales
10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
10/17 8:30 ET Philly Fed MI
10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

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Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
10/16 8:30 ET Retail Sales
10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
10/17 8:30 ET Philly Fed MI
10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

Key Economic Events Week of 10/7

10/8 8:30 ET Producer Price Index
10/9 10:00 ET Job Openings
10/9 10:00 ET Wholesale Inventories
10/9 2:00 ET September FOMC minutes
10/10 8:30 ET Consumer Price Index
10/11 10:00 ET Consumer Sentiment

Key Economic Events Week of 9/30

9/30 9:45 ET Chicago PMI
10/1 9:45 ET Markit Manu PMI
10/1 10:00 ET ISM Manu PMI
10/1 10:00 ET Construction Spending
10/2 China Golden Week Begins
10/2 8:15 ET ADP jobs report
10/3 9:45 ET Markit Service PMI
10/3 10:00 ET ISM Service PMI
10/3 10:00 ET Factory Orders
10/4 8:30 ET BLSBS
10/4 8:30 ET US Trade Deficit

Key Economic Events Week of 9/23

9/23 9:45 ET Markit flash PMIs
9/24 10:00 ET Consumer Confidence
9/26 8:30 ET Q2 GDP third guess
9/27 8:30 ET Durable Goods
9/27 8:30 ET Pers Inc and Cons Spend
9/27 8:30 ET Core Inflation

Key Economic Events Week of 9/16

9/17 9:15 ET Cap Ute & Ind Prod
9/18 8:30 ET Housing Starts & Bldg Perm.
9/18 2:00 ET Fedlines
9/18 2:30 ET CGP presser
9/19 8:30 ET Philly Fed
9/19 10:00 ET Existing Home Sales

Key Economic Events Week of 9/9

9/10 10:00 ET Job openings
9/11 8:30 ET PPI
9/11 10:00 ET Wholesale Inv.
9/12 8:30 ET CPI
9/13 8:30 ET Retail Sales
9/13 10:00 ET Consumer Sentiment
9/13 10:00 ET Business Inv.

Key Economic Events Week of 9/3

9/3 9:45 ET Markit Manu PMI
9/3 10:00 ET ISM Manu PMI
9/3 10:00 ET Construction Spending
9/4 8:30 ET Foreign Trade Deficit
9/5 9:45 ET Markit Svc PMI
9/5 10:00 ET ISM Svc PMI
9/5 10:00 ET Factory Orders
9/6 8:30 ET BLSBS

Key Economic Events Week of 8/26

8/26 8:30 ET Durable Goods
8/27 9:00 ET Case-Shiller Home Price Idx
8/27 10:00 ET Consumer Confidence
8/29 8:30 ET Q2 GDP 2nd guess
8/29 8:30 ET Advance Trade in Goods
8/30 8:30 ET Pers. Inc. and Cons. Spend.
8/30 8:30 ET Core Inflation
8/30 9:45 ET Chicago PMI

Key Economic Events Week of 8/19

8/21 10:00 ET Existing home sales
8/21 2:00 ET July FOMC minutes
8/22 9:45 ET Markit Manu and Svc PMIs
8/22 Jackson Holedown begins
8/23 10:00 ET Chief Goon Powell speaks

Key Economic Events Week of 8/12

8/13 8:30 ET Consumer Price Index
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Labor Costs
8/14 8:30 ET Philly Fed
8/14 9:15 ET Ind Prod and Cap Ute
8/14 10:00 ET Business Inventories
8/15 8:30 ET Housing Starts & Bldg Permits

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