London Gold Fix Operator Seeking New Administrator

Reuters reported that London Gold Market Fixing Ltd., which runs the London gold fix, is looking for a third party to take over administration duties. The move may signal that the fix is to be switched over to an electronic platform.

As quoted in the market news:

The company, working on behalf of gold fixing banks Barclays, HSBC, Societe Generale, and Bank of Nova Scotia, said it had launched a request for proposal (RFP) process with a view to appointing a new administrator for the benchmark, supported by the London Bullion Market Association (LBMA).

‘It is sensible to say that based on the feedback received for the silver alternative, the reformed gold system will also be electronic, auditable and transaction-based,’ an LBMA spokesman said.

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

Click here to read the full Reuters report.