Precious Metals and Basel III - how will IG customers be affected?

[HeOfMuchDisgrunt]

 @CharlotteIG  @MongiIG

Does IG have any advance contingency plans on how to deal with this?

 

 

 

Edited August 20, 2021 by HeOfMuchDisgrunt
Tags hadn't self-highlighted.

[MongiIG]

On 20/08/2021 at 20:42, HeOfMuchDisgrunt said:

 @CharlotteIG  @MongiIG

Does IG have any advance contingency plans on how to deal with this?

 

 

 

Hi @HeOfMuchDisgrunt

IG will fall under the new Investment Firm Regime and therefore we do not expect the Basel III changes to impact IG's clients.

 

All the best - MongiIG

[HeOfMuchDisgrunt]

@MongiIG  Let me clarify the question - is Basel III likely to affect IG's provision of products such as Gold and Silver options and futures and other precious metals?

[MongiIG]

17 hours ago, HeOfMuchDisgrunt said:

@MongiIG  Let me clarify the question - is Basel III likely to affect IG's provision of products such as Gold and Silver options and futures and other precious metals?

Hi @HeOfMuchDisgrunt

As I mentioned we will fall under IFR (Investment Firm Regime) and so will not affect IG products and our clients.

 

All the best - MongiIG

[HeOfMuchDisgrunt]

@MongiIG  Thanks - I understand that you are saying IG will not be legally restricted or prevented from offering these products, but what I'd like to know is whether IG anticipates Basel III affecting any of these markets, eg in terms of liquidity, availability of products in the underlying markets, etc. Are there any products that IG is currently considering withdrawing by its own choice as a result of Basel III?

[MongiIG]

18 hours ago, HeOfMuchDisgrunt said:

@MongiIG  Thanks - I understand that you are saying IG will not be legally restricted or prevented from offering these products, but what I'd like to know is whether IG anticipates Basel III affecting any of these markets, eg in terms of liquidity, availability of products in the underlying markets, etc. Are there any products that IG is currently considering withdrawing by its own choice as a result of Basel III?

Hi @HeOfMuchDisgrunt

Currently we don't anticipate withdrawing any products as a result. Obviously should this change we would let clients know. With regards to underlying market, this could impact liquidity as banks are required to hold more physical (allocated) gold thus pressuring supply (as they buy and hold) and demand (as they are required to hold more especially as collateral against unallocated gold).

 

Hope this answers your question.

 

All the best - MongiIG