Derivatives marketplace CME Group and news and market data provider Thomson Reuters have launched a new LBMA Silver Price mechanism in partnership with the London Bullion Market Association (LBMA), according to a CME Group statement.
The LBMA Silver Price mechanism is an over-the-counter spot silver market with a new transaction-based price-setting mechanism that is IOSCO-compliant and fully electronic, according to the CME statement. “Deep industry engagement and broad market support leading up to the launch should minimize disruptions and enable a seamless transition,” according to the statement.
CME Group will provide the electronic auction platform where the price will be calculated, the LBMA will accredit price participants and Thomson Reuters will be responsible for administration and governance as well as publishing and distributing the benchmark, which will be available on LBMA’s website, officials say. The new Silver Price mechanism replaces the London Silver Fix, the previous silver benchmark, after it ceased 117 years of operations on August 14, 2014.
“I am pleased that we have been able to deliver an on-time solution which meets the requirements of the London Silver Market,” says LBMA Chief Executive, Ruth Crowell, in the statement. “The new mechanism allows more direct participation and the automated auction feed ensures that the same real-time information is available to all participants and market users via numerous data vendors.”
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