The London Silver Market Fixing Ltd. announced that it will stop administering the London silver fix at the end of the day on August 14, 2014.
Until then, Deutsche Bank AG (NYSE:DB), HSBC Bank USA NA and The Bank of Nova Scotia (TSX:BNS) will remain members of the company and continue to administer the fix.
The press release answers a number of important questions:
1. What will happen after 14 August 2014? Will the Silver Fixing cease to exist?
With effect from the close of business on 14 August 2014, the Company will cease to administer a Silver Fixing, and a daily Silver Fixing Price will no longer be published by the Company.
2. What will happen in the period up to that date?
The Company intends to continue to administer the daily Silver Fixing and publish Silver Fixing Prices throughout that period.
3. Why a three month notice period?
Although members of the Company may resign on seven clear days’ notice, the members have confirmed that they stand ready to continue the Company’s operations until (and including) 14 August 2014.
4. What happens after 14 August 2014 for market participants with contracts referencing the Silver Fix?
The Company is not in a position to comment on such matters, but market participants can speak to their contractual counterparties.
5. What does this mean for the gold, and platinum and palladium fixing companies?
This decision relates only to the London Silver Fixing administered by the Company. The Company is not in a position to comment on other fixings.