Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  London Stock Exchange  >  HSBC HOLDINGS       

HSBC HOLDINGS
Mes dernières consult.
Most popular
  Report  
SummaryNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets
The feature you requested does not exist. However, we suggest the following feature:

CME, Thomson Reuters win battle to replace century-old silver benchmark

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/11/2014 | 05:08pm CEST
The Thomson Reuters logo on building in Times Square, New York

LONDON (Reuters) - CME Group (>> CME Group Inc) and Thomson Reuters (>> Thomson Reuters Corporation) will operate an electronic silver benchmark when the 117-year-old "fix" is disbanded in August, in a move widely seen preceding sweeping reforms of precious metals price-setting.

LONDON (Reuters) - CME Group (>> CME Group Inc) and Thomson Reuters (>> Thomson Reuters Corporation) will operate an electronic silver benchmark when the 117-year-old "fix" is disbanded in August, in a move widely seen preceding sweeping reforms of precious metals price-setting.

The London Bullion Market Association (LBMA) said in a statement on Friday that CME Group will provide a price platform and methodology for the daily process, while Thomson Reuters is responsible for administration and governance.

CME/Thomson Reuters will start testing the new process in early August after the closely contested competition to produce a solution.

The silver fix - used by producers, consumers and investors - is set every day at noon by three banks via a conference call, working out a price at which their customers are willing to buy and sell the metal.

But with increased attention from regulators in the wake of benchmark manipulation in other markets, the current operator - London Silver Market Fixing Ltd - said in May it would stop running the daily call.

The LBMA consulted market participants with the aim of producing a transparent electronic alternative that complies with toughened regulatory benchmarking standards.

The association received seven proposals. The main contenders also included the London Metal Exchange (LME) and technology provider Autilla, which had this week joined forces; U.S. derivatives exchange Intercontinental Exchange (>> Intercontinental Exchange Inc), and U.S. news agency Bloomberg.

The new price mechanism is electronic, auction-based and auditable, the LBMA said. It is also tradeable with an increased number of direct participants.

"The winner of the silver fixings is of course the first who would have his hat in the ring when it comes to conducting the other fixings," said one market participant who took part in the LBMA consultation.

BIG BANG

The overhaul of the silver fix is likely to mark the beginning of a major revamp of precious metals benchmarks, including the century-old gold fix and the platinum and palladium fixes.

Some of the companies that had proposed alternatives to the silver fix said they would be ready to assist the gold market, should the current benchmarking process be reformed.

The LME said "we are ready to expand our range of products to further service the industry".

A CME statement said: "We regularly review the market landscape and global dynamics of the gold market, and we continue to talk with customers and market participants about new and innovative ways to help them manage their global price risk."

The World Gold Council held a discussion among buyers and sellers of gold last week on ways to reform the price benchmark.

Financial details of the service to be provided by CME Group and Thomson Reuters were not disclosed.

IOSCO LOOMS

Although market participants view many aspects of the existing gold process favourably, reforms still need to comply with the 19 principles on financial benchmarks outlined in July 2013 by the International Organization of Securities Commissions (IOSCO), an umbrella body of market regulators.

"In the end, we had a workable structure, and two large organisations with plenty of experience behind them in terms of systems and compliance, and regulatory issues," said Jonathan Spall of G Cubed Metals Ltd, which conducted an independent review for the LBMA as part of the selection process.

Thomson Reuters already works with the LBMA to administer Gold Forward Offered Rates, used in swap deals.

The banks involved in the current silver fixing are Deutsche Bank (>> Deutsche Bank AG), HSBC (>> HSBC HOLDINGS) and Bank of Nova Scotia–ScotiaMocatta (>> The Bank of Nova Scotia).

Deutsche Bank's decision earlier this year to leave the gold and silver fix process raised questions about the future of the precious metals benchmarking system.

Barclays Plc (>> Barclays PLC) and Societe Generale (>> SOCIETE GENERALE) operate the gold fixing, along with Scotia and HSBC, while Deutsche Bank stopped in May after two decades.

A senior British regulator said last week when answering lawmakers' questions on the trustworthiness of the gold market that collusion among banks in setting the gold benchmark was possible, but there is no evidence of this.

(Editing by Veronica Brown and Dale Hudson)

By Clara Denina and Jan Harvey

Stocks mentioned in the article
ChangeLast1st jan.
BANK OF NOVA SCOTIA -0.74% 76.26 Delayed Quote.-5.73%
BARCLAYS 0.09% 214.2 Delayed Quote.5.37%
CME GROUP -0.25% 164.72 Delayed Quote.13.11%
DEUTSCHE BANK -0.34% 11.686 Delayed Quote.-26.14%
INTERCONTINENTAL EXCHANGE INC 0.34% 74.54 Delayed Quote.4.07%
SOCIÉTÉ GÉNÉRALE 0.66% 45.265 Real-time Quote.3.74%
THOMSON REUTERS CORP -0.55% 50.33 Delayed Quote.-7.96%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on HSBC HOLDINGS
06:01pHSBC : ETM Group Secure £10 Million Funding for Expansion Plans
AQ
01:06pHSI opens up 248 pts to 30,532; H-share up 119 pts to 12,105
AQ
11:30aHSBC : Technology helps women restart career
AQ
07:21aHSBC : pulls protection for New Look suppliers
AQ
04/18EXCLUSIVE : Japan’s Mizuho loses Saudi bond role in ongoing Gulf rift
RE
04/18HSI opens up 407 pts to 30,469; H-share up 213 pts to 12,113
AQ
04/18HSBC : Family literacy program reaches Canadians in five first languages with ne..
AQ
04/18INVESTOR GROUP : Vote down HSBC annual report
AQ
04/17HSBC BANK MALTA P L C : Malta first major bank to announce pension plan for its ..
AQ
04/17HSBC BANK MALTA P L C : Malta first major bank to announce pension plan for its ..
AQ
More news
Financials ($)
Sales 2018 54 933 M
EBIT 2018 20 424 M
Net income 2018 13 939 M
Debt 2018 -
Yield 2018 5,40%
P/E ratio 2018 13,98
P/E ratio 2019 12,74
Capi. / Sales 2018 3,53x
Capi. / Sales 2019 3,36x
Capitalization 194 B
Chart HSBC HOLDINGS
Duration : Period :
HSBC HOLDINGS Technical Analysis Chart | 4-Traders
Technical analysis trends HSBC HOLDINGS
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
 
Mean consensus HOLD
Number of Analysts 22
Average target price 10,6 $
Spread / Average Target 10%
EPS Revisions
Managers
NameTitle
John M. Flint Group Chief Executive Officer & Executive Director
Mark Edward Tucker Non-Executive Group Chairman
Andrew Maguire Group Chief Operating Officer
Iain James Mackay Group Finance Director & Executive Director
Darryl West Chief Information Officer
Sector and Competitors
1st jan.Capitalization (M$)
HSBC HOLDINGS194 182
JP MORGAN CHASE & COMPANY3.06%372 827
INDUSTRIAL AND COMMERCIAL BANK OF CHINA-6.61%327 191
BANK OF AMERICA1.76%302 496
CHINA CONSTRUCTION BANK CORPORATION-4.30%271 591
WELLS FARGO-16.65%245 706