Citigroup Inc. (NYSE: C) announced on Monday that it has received approval to become the fifth bank to clear trades in the London over-the-counter gold market, signifying a major advancement for its precious metals operations.

This move expands the clearing network that supports the London gold market, which handles approximately $160 billion in average daily trading volume, enabling Citi to participate directly in the core settlement business of global precious metals trading.

This expansion also marks the first time in ten years that the London Precious Metals Clearing Limited (LPMCL) has added a new member, indicating that reforms aimed at opening up the London precious metals market and introducing new participants are beginning to show results.

The other members of this clearing network include HSBC, ICBC Standard Bank, JPMorgan Chase & Co., and UBS.

Citi stated in an announcement: "Citi and LPMCL jointly announce today that Citi has formally become a clearing member of LPMCL, adding London local settlement services for gold, silver, platinum, and palladium."

LPMCL members can settle interbank trades and execute settlements for clients and their end clients through unallocated precious metals held in accounts.

LPMCL members net-clear over 20 million ounces of gold per day on average.

Citi's approval as a clearing member represents the first significant progress for LPMCL since it initiated a restructuring eight years ago.

The last new institution to join was ICBC Standard Bank, a decade ago.

The restructuring aims to make the organization more attractive to new members by clarifying entry requirements and improving governance transparency.

Independent director James Cressy also assumed the role of the organization's chairman last October.

Cressy stated: "Citi's formal admission as an LPMCL clearing member fully validates that our membership process is open and transparent, capable of attracting new institutions to participate in the clearing and settlement of the world's largest over-the-counter precious metals market."

London Precious Metals Clearing members maintain vaulting facilities in London, enabling them to complete precious metals delivery and storage for institutional members and clients, either through their own vaults or compliant third-party storage providers.