ETF Securities one of the world’s largest providers of exchange traded funds (ETFs) have confirmed they are in discussion with the London Bullion Market Association to develop an alternative to the silver fix.

ETF Securities are proposing the new silver fix is based on the company’s existing silver fund which is backed by physical silver and trades on the London Stock Exchange. An electronic auction process would allow participants to buy and sell silver with the process lasting around 5 minutes. Algorithms would then calculate the closing price of the underlying shares to create the fix price.

ETF Securities Chairman, Graham Tuckwell confirmed his company is still in consultation with the LBMA and hopes that the silver fix can continue to take place at noon.

A number of metal exchanges and financial benchmark providers are in the process of developing their own alternatives to the London Fix.