The Chicago Mercantile Exchange (CME) and London Metal Exchange (LME) are competing against each other to develop an alternative to the London Silver Fix which will stop on the 14th August. Both exchanges confirmed last Thursday they are in consultation with the London Bullion Market Association (LBMA) to find alternative to the century old fix.

Industry insiders told the Wall Street Journal that while the CME was in the very early stages of development the LME proposal is far more advanced.

Earlier this month the company behind the fix confirmed they would stop administering the benchmark after Deutsche bank failed to find a buyer for its seat.

Following a number of lawsuits alleging market manipulation banks have been reluctant to buy the seat. Just over a week ago Barclays Bank was fined £26 million for in an attempt to manipulate the gold price.

Platts and Thomson Reuters are also in consultation with the LBMA to provide an alternative.