LBMA ceo Ruth Crowell
First silver, now gold – hi-tech price discovery has arrived for precious metals, and while contributors are limited at present, the new format looks set to attract input from all over the world, including from China’s banks.
The biggest change to date is undoubtedly that, for the first time ever, an electronic algorithm is now being used to set the benchmark price for silver and a similar system should soon be introduced for gold.
The LBMA’s silver price consultation was concluded in July, with CME Group and Thomson Reuters named as the new administrators of the price, now known as the LBMA Silver Price.
The decision was made following feedback from the industry, and a seminar. All the bids that had met the requirements were considered, Crowell said.
"Not just our members, but ISDA members, and any legitimate members of the market were invited to the seminar. We...