“Electronic, Auction-based System” Favored for Silver Fix Replacement

Precious Metals

Reuters reported that according to the London Bullion Market Association (LBMA), silver market participants want to see an “electronic, auction-based system” replace the London silver fix when it ceases to be administered at the end of the day on August 14, 2014.

Reuters reported that according to the London Bullion Market Association (LBMA), silver market participants want to see an “electronic, auction-based system” replace the London silver fix when it ceases to be administered at the end of the day on August 14, 2014.

As quoted in the market news:

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.

Members of the association, which include the current fixers and other large bullion-trading banks such as JPMorgan and UBS, would provide feedback on the proposals at a seminar on June 20, she said.

Click here to read the full Reuters report.

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