Brokerage group CMC Markets is planning to apply for a new license in Singapore, which would allow the company to offer dealing in physical precious metals.
The firm is hiring for a new position in the city-state, with a key part of the role being the acquisition of a new license that would see the firm being registered as a Regulated Dealer under Singapore’s Precious Stones and Precious Metals Act.
Currently CMC Markets is set up in Singapore to offer trading and investing services for cash equities and OTC derivatives.
This new license would allow the firm to offer physical trading in gold and other precious metals.
Beyond giving clients direct exposure to bullion, getting the license would open the door to other business lines.
Perhaps most interestingly, holding the license would mean CMC Markets could let clients use physical gold as collateral for trading activity.
The push to add the license is almost certainly a reflection of client demand. Most OTC brokers are currently seeing about 80% of their volumes in gold.
