There have been a number of changes in recent months to the administrative
and governance arrangements relating to the LBMA prices for Gold, Silver,
Platinum, Palladium and GOFO. These changes and developments are summarised
below.
LBMA Gold Price
The new LBMA Gold Price was
launched on 20 March 2015. The price continues to be set twice daily (at 10:30
and 15:00 London GMT) in US dollars. Sterling and Euro prices are available but
these are indicative prices for settlement only. Market participants will need
to reflect the change in name (LBMA Gold Price) in their own contracts and
agreements as well as those with clients and counterparties.
The new LBMA
Gold Price is operated and administered by an independent third party provider,
ICE Benchmark Administration (IBA), who were selected following consultation
with market participants. This consensus was reached during the LBMA's market
consultation, which involved two market surveys, a seminar and meetings with
market participants, solution providers and the regulator. IBA, an independent
specialist benchmark administrator, provide the price platform, methodology as
well as the overall administration and governance for the LBMA Gold Price. The
IBA platform is electronic, auction-based, tradeable, auditable and fully
IOSCO-compliant solution for the London bullion marketplace.
With effect
from 1st October, 2015 ICE Benchmark Administration are introducing a new
commercial model for the LBMA Gold Price. A Usage Licence is required by any
party that uses the LBMA Gold Price in valuation and pricing activities. For
more information on the LBMA Gold Price please refer to the ICE Licensing
arrangements.
LBMA Silver Price
On 15th August 2014 the historic Silver Fix which
had been in existence since 1897 was replaced by the LBMA Silver Price. The
London Silver Fixing Company Limited was wound down from this date and the
administrative responsibility for the silver price was transferred to CME Group
and Thomson Reuters. CME Group provide the electronic auction platform on which
the price is calculated and Thomson Reuters are responsible for administration
and governance of the LBMA Silver price. The LBMA are responsible for
accrediting price participants and also own the intellectual property rights.
The price continues to be set each business day at 12:00 (London time) in US
dollars. Sterling and Euro prices are available but these are indicative prices
for settlement only. The prices are published on the LBMA's website with a 15
minute delay (see Useful Links section opposite).
This new process for
establishing the new LBMA Silver Price will maintain continuity with the earlier
silver fixing process for market participants while also increasing transparency
via an electronic platform for the auction. It continues to be London-based and
offers a fully IOSCO-compliant solution to the London bullion marketplace. The
earlier benchmarking process has been followed in order to minimize any possible
disruptions and enable a seamless transition for the market. Participants with a
Reuters terminal can view the live auction by quoting the RIC 0#LDNXAG. Further
details on licensing arrangements for The LBMA Silver Price are available on
Thomson Reuters website
Six price participants have been accredited to
contribute to the LBMA Silver Price: HSBC Bank USA NA, JPMorgan Chase Bank,
Mitsui & Co Precious Metals Inc, The Bank of Nova Scotia - ScotiaMocatta, The
Toronto Dominion Bank and UBS AG.
LBMA Platinum and Palladium
Prices
As of 1st December, 2014 the new LBMA Platinum & Palladium
Prices are being independently administered by the London Metal Exchange (LME).
These new benchmarks replace the PGM Fixes, historically administrated by the
London Platinum and Palladium Fixing Company Limited (LPPFCL). This followed an
approach from the LPPFCL to the LBMA to take ownership of the historic and
future intellectual property (primarily price data) of what will now be called
The LBMA Platinum Price and the LBMA Palladium Price. The prices continue to be
set twice daily at 09:45 and 14:00 (London GMT) in US dollars per .9995 fine
ounces. Sterling and Euro prices are available but these are indicative prices
for settlement only.
Five price participants have been accredited to
contribute to both prices; BASF Metals Ltd, Goldman Sachs International, HSBC
Bank USA NA, Johnson Matthey plc and Standard Bank plc.
The intellectual
property will be held by 'Precious Metals Prices Limited', a newly established
subsidiary company of the LBMA. For information on licensing arrangements
relating to the prices, including list of data vendors, please refer to the
LME's website.
From 13 July, 2015 the prices will be displayed on the
LBMA's website with a delay of midnight following the setting of the prices each
day. A data licence is required by any party that uses the LBMA Platinum and
Palladium Prices. For information relating to data licencing arrangements please
refer to the LME's website.