What were the reasons for you wanting to join LBMA and what do you see as the key benefits of membership?
Tradition has been an LBMA Member in the past, and we are extremely pleased to be a Member again. We see a key benefit of Membership as helping to steer the course of the precious metals market, and offer our support where needed. LBMA is the standard to which we subscribe and being a Member is stamp of approval that cannot be garnered from any other authority or organisation.
Tell us about your company’s role in the precious metals market?
Tradition has been intimately involved with precious metals and the OTC trade for nearly four decades. We have had branches covering precious metals around the world, from Sydney to Dubai to London to New York. Our global client base includes all the banks and Market Makers operating in precious metals. Between our seven brokers we currently have a combined 175 years of experience in precious metals.
What’s the background and history of the company?
Tradition began broking gold options in the late 80s, and then evolved to include spot and forwards into its offering, and today offers access to all precious metals derivatives. Tradition has acquired and amalgamated many brands over the years, and is now one of the biggest global financial services companies, offering access to pretty much all financial instruments.
Tradition Dubai Ltd, registered in DIFC, is authorised and regulated by the Dubai Financial Services Authority (DFSA). We cover Asia, Europe and the Americas from our two locations, Dubai and New York. Our team of brokers has intimate knowledge, experience and long-standing relationships across the market.
What factors do you expect to impact your business in the short to long term?
The demand for liquidity is at its highest in the inter-bank market. With fewer price makers than ever, and higher levels of price competition, the market feels quite small. We believe that once the 2020 EFP episode falls further and further out of risk modelling we will see more price makers returning to the centre of the market. For this market to work at its most efficient it needs all the LBMA Market Makers to be active in the Interbank market.
What are your future plans for the business?
We feel a responsibility to maintain the strong heritage we have in precious metals, and to continue to deliver excellence and be a trusted partner to our clients. I would like to see us expand our offering and incorporate clients further afield, bringing them closer to the centre of the market where they can benefit from the pricing and liquidity we can provide. I would like to see the IRS return to the precious metals market as I believe it will be the greatest tool for producers to enter the market with, whilst providing the lowest capital cost to the banks that will then trade it.