Reuters reporting that the century-old system of fixing gold prices twice a day is due to be overhauled with a statement due “imminently” according to their sources
A statement will be made ahead of the implementation of new regulations governing financial benchmarks and changes are likely to include a new code of conduct for participants and the appointment of an independent chairman
Currently the benchmark, or fix, is a twice-daily auction process between just four banks that takes place over the telephone. And that’s an advance in itself.. In my early days in the City they would assemble and sit down around a desk with little flags in front of them!
The current administrator of the fixings is London Gold Market Fixing Ltd who will also request proposals to administer the new process, a similar one to that which took place in the silver market in recent months and which produced an electronic auction mechanism to replace daily conference calls
All part of the thirst for greater market transparency
Time to move on say the Gold market authorities
