ICE Benchmark Administration (IBA) provides the auction platform, methodology as well as overall independent administration of the transparent electronic auction process. The LBMA holds the Intellectual Property (IP) rights for the new price.
The price formation is in dollars and continues to take place twice daily at 10:30 and 15:00. Within the process, aggregated gold bids and offers are updated in real-time with the imbalance calculated and the price updated every 45 seconds.
There are six direct participants who currently contribute to the LBMA Gold Price: Barclays Bank, Goldman Sachs International, HSBC Bank USA NA, Societe Generale, The Bank of Nova Scotia - ScotiaMocatta and UBS. On 20 March, the morning and afternoon gold price auctions settled at $1,171.75 and $1,183.10 respectively, with the aggregate interest in the rounds across both auctions of $219mn.
The LBMA Gold Price will become a regulated benchmark under the Financial Conduct Authority (FCA) Rules from April 1, 2015. The LBMA Gold Price will continue to be available on the LBMA website as well from a variety of major data vendors. The current instrument codes and tickers will remain unchanged.
Ruth Crowell, Chief Executive of the LBMA said today
"I’m delighted that Friday’s launch went smoothly and that now all four precious metals prices have been successfully transitioned to independently administered, electronic auctions. I’d like to thank IBA for their support in ensuring a smooth and successful transition to the new LBMA Gold Price. Friday’s launch included 50% more direct participants, with the prospect of further participants joining in the near future. Thanks to all that have shown interest to date & to those who participated in the testing. I am particularly grateful however to the six participants for demonstrating their commitment to the gold market by standing up and being counted as Day One Participants."
LBMA Media Contacts:
Aelred Connelly
+44 20 7337 9786
aelred.connelly@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.