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       

SummaryNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 
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 CET

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.

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

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on HSBC HOLDINGS
06:40p HSBC : EGP steadies against USD in early trades
11:42a NATWEST BK'B'NCP : Bank is accused of abandoning town
12/02 INTERVIEW : Ben Ryan considering his next step
12/02 HSBC : Transaction in own shares 2 December 2016 (48-page PDF 656KB)
12/02 HSBC : The Manila Times, Philippines, Ben Kritz column
12/02 Deutsche Bank, HSBC to evaluate options for Laiki’s BoC stake
12/02 HSBC : Monthly Return of Equity Issuer on Movements in Securities for the month ..
12/02 HSBC : Next Day Disclosure Return (Share Buyback) 1 December 2016 - Announcement..
12/02 HSI opens down 141 pts at 22,736; H-share -58 pts to 9,833
12/02 GAMING REALMS : Wins Award For Mobile Casino Product Of The Year
More news
Sector news : Commercial Banks
12/02DJMorgan Stanley Toughens Pay Hurdles for Brokers
12/02 BARCLAYS : Deutsche Bank to pay $60 million to settle U.S. gold price-fixing cas..
12/02 Trump creates business advisory council stacked with CEOs
12/02DJDeutsche Bank to Cut Off Around 3,400 Clients
12/02DJCIT : Mnuchin, Tapped for Treasury Secretary, Leaves CIT and Sears Boards
More sector news : Commercial Banks
Advertisement
Financials ($)
Sales 2016 52 954 M
EBIT 2016 17 810 M
Net income 2016 9 649 M
Debt 2016 -
Yield 2016 6,33%
P/E ratio 2016 17,80
P/E ratio 2017 15,23
Capi. / Sales 2016 2,95x
Capi. / Sales 2017 3,02x
Capitalization 156 314 M
More Financials
Technical analysis trends HSBC HOLDINGS
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Technical analysis
Income Statement Evolution
More Financials
Consensus 
Mean consensus HOLD
Number of Analysts 24
Average target price 7,48 $
Spread / Average Target -6,3%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Stuart Thomson Gulliver Group Chief Executive Officer & Executive Director
Douglas Jardine Flint Group Chairman
Andrew Maguire Group Chief Operating officer
Iain James Mackay Group Finance Director & Executive Director
Darryl West Chief Information Officer
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
HSBC HOLDINGS156 314
HSBC HOLDINGS PLC17.55%156 314
AGRICULTURAL BANK OF C..-0.31%150 405
AUSTRALIA AND NEW ZEAL..2.69%62 097
JAPAN POST BANK CO LTD-18.98%55 841
SHANGHAI PUDONG DEVELO..3.26%53 708
More Results