LBMA Precious Metal Prices - Summary
There have been a number of changes in recent months to the administrative and governance arrangements relating to the LBMA prices for Gold, Silver, Platinum, Palladium and GOFO. These changes and developments are summarised below.
LBMA Gold Price
The LBMA Gold Price was launched on 20 March 2015. The price is set twice daily (at 10:30 and 15:00 London BST) in US dollars. Sterling and Euro prices are available but these are indicative prices for settlement only. Market participants will need to reflect the change in name (LBMA Gold Price) in their own contracts and agreements as well as those with clients and counterparties.
The LBMA Gold Price is operated and administered by an independent third party provider, ICE Benchmark Administration (IBA), who were selected following consultation with market participants. This consensus was reached during the LBMA's market consultation, which involved two market surveys, a seminar and meetings with market participants, solution providers and the regulator. IBA, an independent specialist benchmark administrator, provide the price platform, methodology as well as the overall administration and governance for the LBMA Gold Price. The IBA platform is electronic, auction-based, tradeable, auditable and fully IOSCO-compliant solution for the London bullion marketplace.
On the 1st October, 2015 ICE Benchmark Administration introduced a new commercial model for the LBMA Gold Price. A Usage Licence is required by any party that uses it for valuation and pricing activities. For more information please refer to the ICE Licensing arrangements.
A set of Frequently Asked Questions can also be found here. Frequently Asked Questions.
LBMA Silver Price
On 15th August 2014 the historic Silver Fix which had been in existence since 1897 was replaced by the LBMA Silver Price. The London Silver Fixing Company Limited was wound down from this date and the administrative responsibility for the silver price was transferred to CME Group and Thomson Reuters. CME Group provide the electronic auction platform on which the price is calculated and Thomson Reuters are responsible for administration and governance of the LBMA Silver price. The LBMA are responsible for accrediting price participants and also own the intellectual property rights. The price continues to be set each business day at 12:00 (London BST) in US dollars. Sterling and Euro prices are available but these are indicative prices for settlement only. The prices are published on the LBMA's website with a 15 minute delay (see Useful Links section opposite).
This new process provides continuity with the earlier silver fixing process for market participants while also increasing transparency via an electronic platform for the auction. It continues to be London-based and offers a fully IOSCO-compliant solution to the London bullion marketplace. The earlier benchmarking process has been followed in order to minimize any possible disruptions and enable a seamless transition for the market. Participants with a Reuters terminal can view the live auction by quoting the RIC 0#LDNXAG. Further details on licensing arrangements for The LBMA Silver Price are available on Thomson Reuters website
Seven price participants have been accredited to contribute to the LBMA Silver Price: China Construction Bank, HSBC Bank USA NA, JPMorgan Chase Bank, Mitsui & Co Precious Metals Inc, Morgan Stanley, The Bank of Nova Scotia - ScotiaMocatta, The Toronto Dominion Bank and UBS AG.
For more information including detailed Q&A LBMA Silver Price.
LBMA Platinum and Palladium Prices
Since the 1st December, 2014 the new LBMA Platinum and Palladium Prices have been independently administered by the London Metal Exchange (LME). These new benchmarks replaced the PGM Fixes, historically administered by the London Platinum and Palladium Fixing Company Limited (LPPFCL). This followed an approach from the LPPFCL to the LBMA to take ownership of the historic and future intellectual property (primarily price data) of what are now called The LBMA Platinum Price and the LBMA Palladium Price.
The LME has received independent confirmation that the platform, methodology and governance used in the administration of these prices is fully compliant with IOSCO Principles for Financial Benchmarks. The prices continue to be set twice daily at 09:45 and 14:00 (London BST) in US dollars per .9995 fine ounces. Sterling and Euro prices are available but these are indicative prices for settlement only. For information on the price discovery process and adminstration of these prices please refer to the LME's website.
Five price participants have been accredited to contribute to both prices; BASF Metals Ltd, Goldman Sachs International, HSBC Bank USA NA, Johnson Matthey plc and Standard Bank plc.
The intellectual property for both prices is held by 'Precious Metals Prices Limited', a newly established subsidiary company of the LBMA. Same-day LBMA Platinum an Palladium prices can be accessed through market data vendors listed on the LME's website. Since 13 July, 2015 the prices on the LBMA's website are displayed with a delay until midnight following the setting of the prices each day. For information on licensing arrangements relating to these prices, please refer to the LME's website.
The LME licences its data for a wide variety of purposes, including distribution and the creation of derived products. Effective from 4 April, 2016, a Usage Licence is now required for firms who use the LBMA Platinum and Palladium prices or trademark, other than for limited internal business use, for valuation and/or pricing activities, or as a reference in transactions. For more information and for Frequently Asked Questions please refer to the LME's website.
Gold Forward Offered Rates (GOFO)
The Gold Forward Offered Rate (GOFO) dataset was discontinued with effect from the 30 January, 2015 and is no longer published by the LBMA.