Two banks and a metals trading house are providing data for the
first-ever electronic fixing of the daily silver benchmark on
Friday, the London Bullion Market Association said.
Bank of Nova Scotia and HSBC participated in the previous,
telephone-based system that has ruled the silver market for the
past 117 years. The newcomer is Japanese trading house Mitsui &
Co. Precious Metals--a prominent player in the silver market.
The new price will be set electronically at noon London time on
Friday.
Until now, the silver benchmark, known as the silver fix, has
been set by a panel of three banks, which would meet on a daily,
private conference call to establish a price for a range of users
from mining companies to high-street jewelers and central
banks.
That system is being replaced by an electronic benchmark--called
the London Silver Price--run by a consortium of CME Group Inc. and
Thomson Reuters Corp., in partnership with the LBMA, a trade group.
The new auction-based electronic system will match buying and
selling orders from accredited market participants to reach a
benchmark price.
More participants, including banks, trading houses, refiners and
producers, are expected to join the new system in the weeks ahead,
said the LBMA.
"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," it said.
Write to Ese Erheriene at ese.erheriene@wsj.com
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