Silver market favours broad-based e-replacement for price benchmark, LBMA says

Thu Jun 5, 2014 1:25pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* 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...