The Globe and Mail reports in its Saturday, Aug. 16, edition that the first London silver price to
replace the 117-year-old fixing ritual
conducted by a few traders
was set on Friday in an attempt
to make the process more transparent
amid increased scrutiny
of benchmarks.
A Bloomberg dispatch to The Globe reports that the London Bullion Market Association
(LBMA) silver price, set
through an electronic, auction-based
mechanism, settled after
four rounds of negotiations at
$19.86 (U.S.) an ounce, exactly
where it ended at Thursday's
final fixing.
HSBC Holdings, Bank of
Nova Scotia and Mitsui & Co.
were accredited to participate,
the LBMA said. The sale volume
offered was 525,000 ounces and
325,000 ounces were sought.
Silver becomes the first of the
precious-metals markets to ditch
a daily "fixing" procedure in
which dealers agree to a price
over the telephone. Revamps
also are planned this year for fixings
in gold, platinum and palladium.
Scrutiny on how benchmarks
are set increased after regulators
uncovered price rigging in everything
from interbank-loan rates
to currencies. CME Group
and Thomson Reuters will
run the new silver system each
day at midday in London.
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