LONDON - Citi has become the fifth bank to clear transactions in London's over-the-counter gold market, the world's ​largest bullion trading centre, in a major expansion of its precious metals business, the bank said on Monday.

The ​move broadens ​the small clearing network that underpins London's roughly $160 billion-a-day bullion market, giving Citi a direct role in the settlement infrastructure at the heart of global precious metals trading. 

The expansion ⁠also marks the first addition to the clearing group in a decade and is a sign that reforms aimed at opening London's bullion market to new entrants are beginning to bear fruit.

The U.S.-based bank joins HSBC, ICBC Standard Bank, JPMorgan and UBS in the clearing network.

"Citi and the ​LPMCL today announce ‌Citi's admission ⁠as a clearing member of ⁠London Precious Metals Clearing Limited (LPMCL), adding Loco London settlement services for gold, silver, platinum and palladium," Citi ​said in a release.

LPMCL's members use unallocated precious metals in ‌their accounts to settle trades between themselves or trades on ⁠behalf of their customers and their customers' clients. They clear more than 20 million ounces of gold on a net basis daily, on average.

Citi's approval marks LPMCL's first major breakthrough since it began restructuring eight years ago, part of a wider overhaul of the institutions underpinning London's gold market. ICBC Standard Bank was the last new member to join 10 years ago.

The restructuring, which was aimed at making the organisation more accessible to new members by clarifying entry requirements and more transparent in terms of governance, resulted in independent board member James Cressy ‌becoming chair in October.

"The addition of Citi as a clearing member ⁠of LPMCL demonstrates the openness and transparency of our membership process, allowing ​new entrants to join and participate in the clearing and settlement of the predominant global over the counter precious metals market," Cressy said.

London bullion clearing members have vaulting facilities in London, using either their ​own premises, ‌or those of a secure storage agent to process and store precious ⁠metals for both the member and clients ​requiring custodial storage.

(Reporting by Polina Devitt and Pratima Desai; Editing by Louise Heavens)