Thursday will be the last time traders at four banks agree by phone twice-daily prices for bullion.
London Bullion Mining News
Bids and offers will be published in real time and the price updated every 30 seconds.
Broker Autilla Ltd (Sapient), the Chicago Mercantile Exchange jointly with Thomson Reuters, U.S. derivatives bourse Intercontinental Exchange, the London Metal Exchange and broker ICAP's online platform EBS will present their proposals this Friday.
The LME says its electronic solution for the platinum and palladium price — LMEbullion — could benefit gold bugs.
Since it first debuted in August, only five participants have signed up to the price setting process.
Winner will be announced in October, and implementation will be complete by the year-end.
The 18 cases will be sent to U.S. District Judge Valerie Caproni in Manhattan, who has already been overseeing a putative class-action against the five banks that make up the fix.
No bank has publicly stepped forward to say they will be involved in the new silver benchmark.
The plan is to announce a third-party administrator by the end of September.
The three banks have been accused of fixing the price of trillions of dollars worth of silver.
The company’s new board is made up of compliance officers at the four banks that currently operate the gold prices setting process.
The exchange would bid to be involved in a new process, which may turn the current twice-daily gold price-setting conference call into an electronic auction.
The firm that operates the global price benchmark confirmed it has begun a request for proposals (RFP) process to find a new administrator for the fix.
The move could hasten the end of the 95-year-old bullion benchmark.
With a capacity of 1,500 tonnes.
Resignation leaves four banks to oversee the gold fix and only two to determine global silver prices.
Investors failed to demonstrate the bank violated federal antitrust and commodities laws by having distorted silver prices.
Europe’s biggest investment bank by revenue will no longer participate in the price-setting process for gold and silver, or fixing.
Prices improved 1.3% in the previous two sessions, but the metal is still set to drop for the fourth consecutive month.
The London fix —a benchmark rate used by mining companies, jewellers and central banks to buy, sell and value gold— may have been subject to manipulation in the last few months.
Says it might start charging member banks more or even dissolving the Gold Forward Offered Rates (GOFO).