CME Group, Thomson Reuters to Provide Silver Fix Replacement

The London Bullion Market Association (LBMA) announced today that CME Group and Thomson Reuters will provide the replacement for the London silver fix, which the London Silver Market Fixing will stop administering at close of day on August 14, 2014.

As quoted in the press release:

This consensus was gained during the LBMA’s market consultation which involved two market surveys, a seminar and numerous meetings with market participants, solution providers and regulators. The second survey indicated a clear market consensus for the CME Group & Thomson Reuters proposal. The price mechanism meets the LBMA Request for Proposal process criteria as it is electronic, auction-based and auditable. It is also tradeable with an increased number of direct participants. The criteria was based on the feedback provided from market participants who contributed to the first survey.

The press release also indicates how the replacement will operate:

In terms of the division of responsibilities, CME Group will provide the price platform and methodology and Thomson Reuters will provide the administration and governance. The LBMA will develop a process of accreditation for silver price participants. The legal aspects of this division of responsibilities will be finalised prior to go live. In the meantime the LBMA will work closely with the CME Group and Thomson Reuters to prepare the London Silver Price mechanism for testing in early August.

Click here to read the full LBMA press release.