StoneX Group Inc, a financial services firm specializing in securities and commodities trading, announced on Thursday that its subsidiary business based in London, StoneX Financial Ltd ('SFL'), has become a member of The London Metal Exchange ('LME')'s Platinum Group Metals auction. As a new member, StoneX Financial Ltd can now participate in auctions run twice a day in London that set global benchmark prices for platinum and palladium. The membership has made the firm become the first non-bank to participate in all the major precious metals auctions in London.
StoneX Financial is the sixth participant in the auctions run by the London Metal Exchange. The other members include Johnson Matthey chemicals company, ICBC Standard Bank, HSBC investment bank, Goldman Sachs investment bank, and BASF metals limited.
These firms funnel orders to the auctions of the precious metals. Companies around the world purchase and sell platinum and palladium through the auctions, and the prices they generate are embedded in contracts across the industry.
At the London Metal Exchange, the auctions for both platinum and palladium take place twice daily, once in the morning beginning at 09.45 and once in the afternoon starting at 14.00 (London time). As soon as the platinum price is discovered, the palladium auction commences.
Barry Canham, the Global Head of StoneX Financial Ltd's Metals Division, mentioned: "We are excited to join the Platinum Group Metals auction as it marks another significant milestone for our precious metals business. We've had a strong relationship with the LME primarily on the Base Metal side of the business, so joining the PGM auction was a natural progression as we are already members of the IBA Gold and Silver auctions. Our customers expressed a continued desire for us to become members, and the LME has been incredibly supportive throughout the entire process."
In addition, StoneX is a participant in daily silver and gold benchmark auctions run in London by ICE Benchmark Administration, an arm of Intercontinental Exchange (ICE).
Platinum and palladium are majorly used by vehicle manufacturers (such as Nissan, Toyota, Hyundai, among others) who embed them in engine exhausts to reduce harmful emissions. However, platinum is also used in other industries like glassmaking, jewellery and as an investment.
Driving Innovation and Digitalization in the Global Markets
In June 2020, StoneX Group abandoned its former name ‘INTL FCStone’ after it completed its acquisition of GAIN Capital, an online trading services provider. The move to rebrand itself was approved by the majority of shareholders of INTL FCStone. The development followed a record 183% increase in revenue year-on-year during the second quarter of 2020. The firm benefited during the Covid-19 pandemic from vigorous trading in everything from natural gas to corn to tech stocks. The rebrand signalled the company’s efforts to offer a more digital platform with efficient access and connectivity to all markets globally. StoneX Group provides its clients with access to 175 foreign exchange venues, 36 derivatives exchanges and almost all other major global securities markets.
