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LBMA Chooses CME Group/Thomson Reuters To Administer Silver Fix

By Kitco News
Friday July 11, 2014 7:52 AM

(Kitco News) - CME Group/Thomson Reuters will administer the London Silver Price fix, the London Bullion Market Association said Friday.

The LBMA said market participants selected CME Group/Thomson Reuters following 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 LBMA said.

“This market consensus was also supported by the independent review conducted by Jonathan Spall of G Cubed Metals Ltd. As part of his review, Jon carried out in-depth interviews with the seven companies who delivered presentations at the seminar on the 20th June. Feedback from the surveys, the seminar together with the conclusions of the independent review were presented directly to a meeting of the LBMA Management Committee, LBMA Market Makers and the Data Working Group,” the LBMA said.

Recent news reports said the CME Group/Thomson Reuters was selected to run the new silver fix.

The London Silver Market Fixing Limited said earlier in the year it was ending the silver fix as of Aug. 15, and the LBMA sought proposals for a new administration run it. In its request, the LBMA wanted a silver fix that was electronic, auction-based, auditable and would be tradeable with an increased number of direct participants.

As the new silver-fix operators, CME Group will provide the price platform and methodology and Thomson Reuters will provide the administration and governance, the LBMA said, while the association will develop a process of accreditation for silver price participants.

“I am delighted that there was a clear market consensus for the CME Group and Thomson Reuters joint proposal…. We will work in partnership with the CME Group, Thomson Reuters and price participants to implement the solution in time for testing in early August and go live on the 15th August,” said Ruth Crowell, chief executive of the LBMA said in the press release.

By Debbie Carlson of Kitco News; dcarlson@kitco.com
Follow me on Twitter @dcarlsonkitco



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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