Friday, August 15, 2014
CME Group, LBMA and Thomson Reuters launches the first LBMA Silver Price today.
The London Silver Fix has been a global benchmark for 117 years and the new price will provide pricing and liquidity continuity for market participants. The new electronic auction process increases transparency and the potential number of direct market participants. The LBMA Silver Price provides a fully IOSCO-compliant solution to the London bullion market and streamlines the dissemination of data to numerous data vendors. Our intention throughout the market consultation and implementation process has been to minimise any possible disruptions and facilitate a seamless transition for the market. This has been achieved today through the partnership with the CME Group and Thomson Reuters.
CME Group provides the electronic auction platform on which the price is determined and Thomson Reuters, as the LBMA Silver Price benchmark administrator, is responsible for administration and governance. The LBMA will accredit price participants and own the intellectual property rights. The benchmark price will continue to be published and distributed by various data vendors and will be available on the LBMA’s website.
The market has met the challenges imposed by not only the short time-frame but also by the practical implementation of the new auction platform and governance procedures. Given the strong market engagement in the live testing and accreditation process, the LBMA fully expects the list of price participants will grow over the coming weeks as more participants meet the formal requirements to participate in the LBMA Silver Price. These participants include banks, trading houses, refiners and producers.
Although the accreditation process has been undertaken quickly and efficiently, the tight schedule and time of year has imposed constraints on some potential participants meeting the 15th August deadline. Price participants were required to secure internal sign-off on the necessary credit, legal, compliance and IT requirements. This means that it was not possible to accredit by the 15th August all those who participated in the live trials and who are at various stages of satisfying the requirements for accreditation. The LBMA will continue to publish LBMA Silver Price Participants on its website as they are accredited.
Further information about LBMA Silver Price including a set of FAQs is available on the LBMA’s website.
Ruth Crowell, Chief Executive of the LBMA commented
“I am delighted that the first LBMA Silver Price will be launched today. This is the culmination of an intense three month period of consultation, discussions and preparation. I would like to take the opportunity to thank all those who have been involved in the process. The LBMA has been overwhelmed with the support that it has received from its partners, CME Group and Thomson Reuters as well as LBMA members and other participants in the wider market.
Without the engagement and support of the market we would not have been able to implement the solution. I would also like to extend my thanks to those who have already achieved accreditation as a price participant and to those who are progressing towards accreditation. Last and not least, I would like to thank both CME Group and Thomson Reuters who have pulled out all the stops to ensure that the LBMA Silver Price was launched on schedule. To have satisfied all of the legal, compliance, regulatory and IT requirements in such a short window is testament to their dedication and support for the London Bullion Market.”
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