London gold fix to appoint new administrator
Adam Pike, News Editor
30 Jul 2014, 10:23 a.m.
The four banks which conduct the 100 year old daily gold fix and the London Bullion Association (LBMA) will seek proposals for an independent body to run and administer the new London gold fix.
The London Gold Market Fixing Company, who currently oversees the process, and the LBMA confirmed they will announce the new administrator by the end of September.
The World Gold Council along with industry participants discussed alternatives to the current process in their July meeting. The industry agreed there was a need for both an independent third party to administer the fix and a need to improve the transparency of the process. The London Gold Market Fixing Company confirmed they will continue to liaise with the Financial Conduct Authority until the process has been finalised.
The changes come at a time when pricing benchmarks around the world have come under intense scrutiny following the recent Libor and foreign exchange scandal.
In May the Financial Services Authority fined Barclays Bank £26 million for allowing one of their traders to manipulate the gold price.