The Financial Times reported that the replacement for the London gold fix should be operational by the end of the year.
The Financial Times reported that the replacement for the London gold fix should be operational by the end of the year. Barclays plc (LSE:BARC), HSBC Holdings plc (NYSE:HSBC), the Bank of Nova Scotia (TSX:BNS) and Societe Generale SA (EPA:GLE) will be handing responsibility for the benchmark over to a third party.
As quoted in the market news:
The London Gold Market Fixing Ltd, which is owned by the banks, said on Tuesday it was ready to start soliciting proposals from companies that wished to operate the new gold reference price. In a joint statement with the London Bullion Market Association, a trade body, the banks said the market consultation to select a winning bidder would begin in late August and last for a month. Implementation ‘will be complete by the end of 2014′.
The banks’ decision to abandon the gold fix, which is used by producers, consumers and financial institutions to trade bullion bars and value contracts, followed the similar move in the silver market. The 117-year-old silver fix, run by three banks that meet daily via teleconference, will cease to operate on August 14. The new electronic silver auction process will be run by the Chicago Mercantile Exchange and Thomson Reuters, which on July 11 saw off competition from six other bidders, including the London Metal Exchange and Bloomberg.