Making The LBMA Obsolete

159

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.

TF

  159 Comments

realitybiter
Mar 13, 2015 - 2:20pm

missed a 0

100k should be a million on AAPL

Pseudozero
Mar 13, 2015 - 2:39pm

For the win.

Is it gold bullion?

DeaconBenjamin
Mar 13, 2015 - 2:51pm

I hope they have good life insurance

and that they avoid nail guns. If the TBTFs eat their own, how will they treat a serious competitor?

CPE
Mar 13, 2015 - 2:54pm

@DeaconBenjamin

you are correct, but this is bigger than one guy now...they've been running in Australia for a couple years now, the global aspect is an extension of what already exists there.

DeaconBenjamin CPE
Mar 13, 2015 - 2:58pm

When Dubai opened its gold exchange

The TBTFs pulled all lines of credit, and Dubai had to be bailed out.

DeaconBenjamin
Mar 13, 2015 - 3:12pm
H8Fiat
Mar 13, 2015 - 3:32pm

Maybe I'm just jaded

I sure wish this to be successful and put a world of hurt on BB's, but I just can't see how this isn't anything more that a bunch of "large international coin stores" with a common informational platform. If buyers of size were out there, why are so many contracts cash settled or rolled on the CME and not stood for physical delivery.

Actual demand needs to happen more so than transparency IMO. Demand will hopefully lead to further disconnect between paper / physical and delivery default. Then all bets are off.

H8

H8Fiat
Mar 13, 2015 - 3:47pm

I'll try to explain this...

...but recognize that I'm no expert in this.

This isn't a "coin store" platform, though I suppose it can be used by small wholesale and retail customers. Instead, this is designed for BIG buyers...even tonnage size...as a way to bypass the BBs, not be front run by them and anonymously acquire actual physical and fully-allocated metal.

The Comex/CME traders never stand because it's simply a paper derivative shuffle. This platform is for fully-allocated physical purchase.

I hope that helps explain the difference.

H8Fiat
Mar 13, 2015 - 4:11pm

Re: I'll try and explain this

Understand and I agree, maybe the "coin store" reference was a little confusing. Probably what is better to say is "off key exchanges" to purchase physical.

My point is that if there are "BIG buyers" out there of physical metals, why don't we see their foot prints. Until "BIG buyers" overwhelm "broke producers" or suppliers of physical metals, the BB's still will maintain control.

Bigger implication for price may be China gaining seat in new fix.

Thanks for response.

H8

SS121
Mar 13, 2015 - 4:35pm

So...

an australian visionary heads out to bring justice to an unjust world and after traveling the globe, (and coincidentally meeting up with internet gold story legend Agent Andy) ...they worked night and day and against all odds and risk of life and limb from the "real bad guys" they finally did it!!!

They built the WOPR 2.0!!

Never mind the exact details of how 2.0 supposedly works, since apparently there aren't any. And never mind when it's next, next, next rollout date will be since it's already been rolled out and is working. huh? No. never mind that stuff!! no no no... all you have to do is BELIEVE!!!

Just BELIEVE that the old crooked secretive system apparatus that supposedly generates the data that feeds the chart that controls the price of all the world's physical Gold transactions...

-is going to be "DISRUPTED"!!! TAKEN DOWN!!! REPLACED!!!

by a NEW ambiguous anonymous (system) APPARATUS!!! ...that will still generate ..., data , . . feed . . .charts. . . .prices , . . . ->control<- phyzz transaction prices...

Just keep stackin' that Silver Homies

Subscribe or login to read all comments.

Contribute

Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

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

Key Economic Events Week of 8/5

8/5 9:45 ET Markit services PMI
8/5 10:00 ET ISM services PMI
8/6 10:00 ET Job Openings
8/8 10:00 ET Wholesale Inventories
8/9 8:30 ET Producer Price Index

Key Economic Events Week of 7/29

7/30 8:30 ET Personal Inc/Spending & Core Inflation
7/30 10:00 ET Consumer Confidence
7/31 8:15 ET ADP employment
7/31 2:00 pm ET FOMC Fedlines
7/31 2:30 pm ET CGP presser
8/1 9:45 ET Markit Manu PMI
8/1 10:00 ET ISM Manu PMI
8/2 8:30 ET BLSBS
8/2 10:00 ET Factory Orders

Key Economic Events Week of 7/22

7/23 10:00 ET Existing home sales
7/23 10:00 ET Richmond Fed Manu Idx
7/24 9:45 ET flash Markit PMIs
7/25 8:00 ET Count Draghi/ECB policy meeting
7/25 8:30 ET Durable Goods
7/25 8:30 ET Wholesale Inventories
7/26 8:30 ET Q2 GDP first guess

Key Economic Events Week of 7/15

7/15 8:30 ET Empire State Fed Index
7/16 8:30 ET Retail Sales and Import Price Index
7/16 9:15 ET Cap Ute and Ind Prod
7/16 10:00 ET Business Inventories
7/17 8:30 ET Housing Starts and Building Permits
7/18 8:30 ET Philly Fed
7/19 10:00 ET Consumer Sentiment

Key Economic Events Week of 7/8

7/9 8:45 ET Fed Stress Conference, three Goon speeches
7/10 8:30 ET CGP Hump-Hawk prepared remarks
7/10 10:00 ET CGP Hump-Hawk House
7/10 10:00 ET Wholesale Inventories
7/10 2:00 ET June FOMC minutes
7/11 8:30 ET CPI
7/11 10:00 ET CGP Hump-Hawk Senate
7/11 12:30 ET Goon Williams
7/12 8:30 ET PPI

Key Economic Events Week of 7/1

7/1 9:45 ET Markit Manu PMI
7/1 10:00 ET ISM Manu PMI
7/1 10:00 ET Construction Spending
7/2 6:35 ET Goon Williams
7/3 8:15 ET ADP June employment
7/3 8:30 ET Trade Deficit
7/3 9:45 ET Markit Services PMI
7/3 10:00 ET ISM Services PMI
7/3 10:00 ET Factory Orders
7/4 US Market Holiday
7/5 8:30 ET BLSBS

Key Economic Events Week of 6/24

6/25 10:00 ET New Home Sales
6/25 1:00 pm ET Chief Goon Powell
6/25 5:30 pm ET Goon Bullard
6/26 8:30 ET Durable Goods
6/27 8:30 ET Q1 GDP final guess
6/28 8:30 ET Personal Income and Consumer Spending
6/28 8:30 ET Core Inflation
6/28 9:45 ET Chicago PMI

Key Economic Events Week of 6/17

6/18 8:30 ET Housing Starts and Building Permits
6/19 2:00 ET FOMC Fedlines
6/19 2:30 ET CGP presser
6/20 8:30 ET Philly Fed
6/21 9:45 ET Markit flash June PMIs

Recent Comments

Forum Discussion

randomness