LONDON (March 1): The World Gold Council is gathering views from banks and traders on the London gold market, including the potential to migrate over-the-counter transactions to an exchange, said three people with knowledge of the matter.

The council hired consultants to seek views on how the gold market could be improved, according to the people, who asked not to be identified because the talks were private.

The city’s gold market is represented by the London Bullion Market Association, while the World Gold Council is a lobbying group backed by 19 mining companies.

Gold contracts change hands through an exchange in New York, Singapore and Shanghai, while London, where gold dealing goes back more than three centuries, relies on banks and other companies to manage counterparty risks.

Prices in London are also set via a twice-daily phone call between banks that will be replaced by an electronic system in March.

Trading in commodities is under increased scrutiny by regulators worldwide and lawmakers have pressed for tighter controls for banks dealing in them.

About US$18 trillion of gold circulated globally in 2013, according to CPM Group, a New York-based research company.

The World Gold Council is “constantly exploring potential market development initiatives,” the London-based group said in an e-mailed statement on Friday, without giving further details.

“Our overriding aim is to encourage a transparent, efficient and liquid gold market.”

Simon Rostron, an external spokesman for the LBMA, declined to comment.