New Gold Fix Price to be chosen in August 2014
The current operator of the Gold Price Fix, which determines fixed market price for the precious yellow metal, will initiate a process to find new administrators of the century-old benchmarking system. It is anticipated that the administration will be working by the end of 2014. The London Gold Market Fixing Ltd (LGMFL) and the London Bullion Market Assosiation (LBMA) will make the announcement in the later part of September as the current process is wound up.
A similar process to find a price benchmark administrator for the Silver market has recently happened with an electronic auction mechanism being put in place of a daily conference call between the current administrating parties. This system is due to go live on August 15th 2014.
The changes are happening due to scrutiny from regulators in the United States of America, Europe and Asia after the Libor manipulation cases dating back to 2012.
The Chicago Mercantile Exchange (CME) will be handling the Silver benchmark and has confirmed its interest to operate the Gold process too. Thomson Reuters will jointly administrate the Silver price fix when the new system is up and running.
Bank of Nova Scotia, HSBC, Societe Generale, and Barclays, making up the LGMFL, currently operate the Gold fixing. Deutsche Bank withdrew in May after two decades on the board.
News source: uk.reuters.com.