London gold fix company appoints committee to oversee benchmark

Fri Jul 25, 2014 6:40am EDT
 
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* Gold fix company to detail new code of conduct

* New administrator, chairperson sought for gold fix

* RFP process unlikely to be launched before new silver fix starts

By Clara Denina

LONDON, July 25 (Reuters) - The company operating the gold price 'fix' has appointed a supervisory committee to oversee the century-old system of benchmarking gold prices ahead of the implementation of stricter regulations, its website showed on Friday.

The London Gold Market Fixing Ltd's new board is made up of compliance officers at the four banks that currently set the twice-daily auction process over the telephone.

The appointment of the committee comes after the company said this month it was seeking a third party to take over administration of the process.

Other changes, which will include a new code of conduct for participants and the appointment of an independent chairperson, are widely seen as the first steps toward a move to an electronic platform which will broadcast it to a wider audience.

A similar process to find a new price benchmark administrator recently took place in the silver market. That yielded an electronic auction mechanism to replace a daily conference call with just three banks.   Continued...