UPDATE 2-London Metal Exchange offers three alternatives to silver fix

Mon Jun 16, 2014 12:34pm EDT
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* LME has made proposal to enhance existing phone method

* Exchange could use its open outcry floor for silver fix

* Third alternative makes use of its electronic platform (Adds details, quotes, background)

By Clara Denina and Eric Onstad

LONDON, June 16 (Reuters) - The London Metal Exchange (LME), competing to offer a replacement for the London silver benchmark, said on Monday it could offer three alternatives including an enhanced telephone-based process and an option for open-outcry price setting.

The 117-year-old London silver price benchmark - or fix - will cease on Aug. 14, its operator - London Silver Market Fixing Limited - said last month, as regulatory scrutiny of price-setting intensifies across markets.

"We are very interested in playing a greater role in the silver and gold markets," LME Chief Executive Garry Jones said.

The LME, owned by Hong Kong Exchanges and Clearing Ltd , had already proposed an alternative to the current telephone-based method, with better auditing and compliance.

This would include an independent chairman from the LME pricing committee, LME executives told a presentation in London.   Continued...