We all know that the current, LBMA system is broken, arcane and in need of modernization. Into this void steps a company called Bullion Capital with a new, wholesale metals exchange designed to rival and, ultimately, circumvent the LBMA. In this interview, the CEO of Bullion Capital, Tom Coughlin, addresses how this new exchange will operate and why it has the potential to be such a game-changer.
After years of development, this new wholesale exchange will finally be ready for rollout in April. In his first public interview, Tom Coughlin addresses many of the questions surrounding this project and sheds light upon how the exchange will function and what makes it such a threat to the Bullion Bank status quo. Among the topics covered:
- How will this exchange differ from the existing LBMA structure?
- The ability of the exchange to provide a disruptive technology that allows users to entirely circumvent the LBMA.
- In stark contrast to the LBMA, the anonymity that this new exchange gives market participants, thereby eliminating the possibility of bullion bank front-running of orders.
- The global network of vaulting and settlement facilities, in place from day one, which allow the exchange to function on a 100%, fully allocated framework.
It was a great pleasure to visit with Tom and a real honor that he would utilize TFMR to begin spreading the word about this new exchange. Once the exchange goes "live" next month, I hope to have Tom back on for an update and status report. Until then, please give this interview a thorough listen and recognize that great strides are being made in our fight against the existing, highly-leveraged and unallocated system of price discovery.