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ICE To Replace London Gold Fix

By Kitco News
Monday February 2, 2015 12:45 PM

(Kitco News) - The Intercontinental Exchange (NYSE:ICE) will be administering the London Bullion Market Association (LBMA) gold fix in March 2015, when it will replace the London Gold Fix, which has been used since 1919.

Previously announced in late 2014, the exchange’s ICE Benchmark Administration (IBA) will head the pricing mechanism, which it said will transition to a physically settled, electronic and tradeable auction, with the ability to participate in three currencies: USD, EUR and GBP.

“We are encouraged by the number of firms who have shown interest in being participants in the new, electronic auction,” said Finbarr Hutcheson, president of the IBA. “Expanding the number of participants in the auction will increase the transparency and robustness of the data used to calculate the benchmark, giving a better representation of the market price.”  

The IBA said that aggregated gold bids and offers will be updated in real-time with the imbalance calculated and the price updated every 30 seconds. The process will done using ICE’s WebICE platform, which will provide participants, and sponsored clients, the means to real-time auctions.

“The intention and the interest has been very positive and creates a more diverse pool of participants which includes Chinese bank,” says Ruth Crowell, chief executive at the LBMA. “We look forward to having enhanced numbers of participants for day one for the LBMA Gold Price.”


By Alex Létourneau of Kitco News aletourneau@kitco.com
Follow Alex Letourneau @alex_letourneau



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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