Silver market favours broad-based e-replacement for price benchmark, LBMA says
* Existing silver benchmark to cease on August 14
* Participants want more contributors, electronic system
* LBMA invites proposals from potential administrators
By Jan Harvey and Clara Denina
LONDON, June 5 (Reuters) - Silver market players are in favour of an electronic, auction-based system for setting a benchmark price with a broader base of contributors when the 'fix' ceases in August, the London Bullion Market Association (LBMA) said on Thursday.
The LBMA has been consulting market participants on a potential replacement for the daily silver 'fix' since its operator said in May it would stop administering the 117-year-old process.
HSBC, Deutsche Bank and Scotiabank currently set the price once a day via a conference call.
Citing the results of a survey, which attracted 440 participants, the LBMA said: "The general consensus was that the silver pricing mechanism should be an electronic, auction-based solution. The solution must be tradeable, with an increased number of direct participants."
LBMA Chief Executive Ruth Crowell said the association had launched a request for proposals from all companies who had expressed an interest in administering the silver price benchmark. Continued...