Finbarr Hutcheson, ICE Benchmark Administration
"The new LBMA Gold Price will benefit from increased transparency, and the robustness of the data used to calculate the benchmark will give a better representation of the market price."
London - Intercontinental Exchange, the network of exchanges and clearing houses, has announced that ICE Benchmark Administration (IBA) expects to launch the new LBMA Gold Price, which replaces the long established London Gold Fix, on 20 March 2015.
Finbarr Hutcheson, president, ICE Benchmark Administration said: "Under the administration of IBA, the new LBMA Gold Price will benefit from increased transparency, and the robustness of the data used to calculate the benchmark will give a better representation of the market price. We would like to thank the London Bullion Market Association and the precious metals industry for their work and support in the transition of this globally important benchmark."
As the administrator of the LBMA Gold Price, IBA will operate a physically settled, electronic and tradeable auction. The price formation will be in dollars and participants will have the ability to settle orders in three currencies: USD, EUR and GBP. Within the process, aggregated gold bids and offers will be updated in real-time with the imbalance calculated and the price updated every 30 seconds and prices will continue to be set at 10:30 and 15:00 (London time). IBA will use ICE's widely distributed trading platform, WebICE, as the technology which will allow direct participants, as well as sponsored clients, to manage their orders in the auction in real time via their desktops.