LONDON SILVER PRICE CONSULTATION – SEMINAR UPDATE
Thursday, June 19, 2014
As part of its on-going London Silver Price Consultation, the LBMA will be holding a seminar on the 20th June.
The event is open to all LBMA members, ISDA members and any other bullion market participants. The Financial Conduct Authority and the Bank of England will be in attendance as observers and the seminar will be conducted under the Chatham House rule.
The purpose of the seminar is for bullion market participants to consider presentations from possible solution providers for a London Daily Silver Price mechanism. Participants in the Seminar and consultation will receive a follow-up survey to provide them with the opportunity to give further feedback on the proposed solutions. LBMA Members will also be asked to confirm which solution they will be willing to participate in with effect from 15th August. The LBMA received proposals from ten companies who are interested in developing and administering a silver price mechanism with effect from Friday, 15th August. A short list of seven proposals has been compiled based on whether they satisfy the requirements set out in the LBMA’s Request for Proposal (electronic, auction-based and auditable). The short list comprises Autilla Ltd (Cinnober Financial Technology of Sweden), Bloomberg, CME Group (Thomson Reuters), ETF Securities, ICE, LME and Platts.
The seminar will provide the opportunity for members of the market to consider presentations from those on the shortlist. Proceedings will start with lunch at 11:30, followed by a series of presentations taking place from 12:30, with the seminar scheduled to close at 17:00. For those unable to take part in person, the LBMA has arranged a web link. Executive summaries of the proposed solutions will be circulated to the press by the LBMA early next week. Copies of Friday’s presentations will be posted on the Members’ Section of the LBMA website.
It is expected that a market consensus will be announced in early July, after consultation with regulators. The solution provider will then develop the daily silver price mechanism with the assistance of the LBMA. This is with a view to undertaking testing in early August ahead of the solution going live on the 15th August.
Commenting on the seminar, Ruth Crowell, the LBMA Chief Executive, said:
“It is important that the market engages in the LBMA’s consultation and indicate which mechanism they would be willing to accept, and most importantly, to participate in. Only with market engagement can a solution work in practice. More than 100 delegates have already registered for the seminar. We look forward to receiving views from those participants on the day as well as in the survey that follows”
For further information please contact Aelred Connelly, PR Officer, on
Tel: +44 (0)20 7796 3067 or AG.Consult@lbma.org.uk.
About the London Bullion Market Association
The LBMA is the international trade association that represents the wholesale over-the-counter market for gold and silver bullion. The LBMA undertakes many activities on behalf of its members and the wider market, including the setting of good delivery and refining standards, the organisation of conferences and other events, and serving as a point of contact for the regulatory authorities. For more information, please visit www.lbma.org.uk.