Silver price administration & governance
LBMA Silver Price Benchmark
The new electronic algorithm-based system for calculating silver prices, provided by Thomson Reuters and CME Group, and designed to be more transparent and accountable.
Administrator Statement – 3 March 2017
The forthcoming European Benchmark Regulation, due to be implemented in January 2018, prompted a review of the existing LBMA Silver Price administration arrangements and, in consultation with the LBMA, CME Group and Thomson Reuters have decided to step down from their respective roles in relation to the LBMA Silver Price auction.
The LBMA will shortly be launching a new tendering process to identify an alternative provider to operate and administer the auction process. During the transitional period, CME Group and Thomson Reuters will continue to operate and administer the auction until a new provider is appointed, in order to avoid any disruption to the market and to ensure a seamless transition.
The priority for all parties is to ensure the continuity and integrity of the LBMA Silver Price at all times. CME Group and Thomson Reuters remain committed to providing the best service to the global silver community.
The LBMA Silver Price is the global reference rate for the price of silver, set by electronic auction, provided for LBMA by Thomson Reuters and the CME Group.
Each auction opens at 12 noon London time with a start-price and lasts 30 seconds. The auction rounds continue until equilibrium between buy and sell orders is reached, at which the LBMA Silver Price is established.
Thomson Reuters distributes both the silver price and auction round data over the Eikon desktop and the Elektron platform. The data is also available on Datascope select and is made available for redistribution by third-party vendors.
The auction is accessed through CME Direct. An electronic auction platform providing real time order management, order history, confirmations and a full audit trail. The online platform is designed to segregate functions between house and client with specific access for compliance and trade supervision.
- At the start of each auction round, an algorithm determines the price that is displayed on the auction platform
- During each round, market participants submit buy or sell quantities in Lakhs
- At the end of each round, buy and sell orders are compared to determine equilibrium. Once achieved, the auction will close and the LBMA Silver Price is published
- Equilibrium is reached when the difference between buy and sell orders are within a pre-defined tolerance
- Orders are automatically netted and matched to produce trades confirmations.
Thomson Reuters Eikon delivers the complete package for successful commodity trading and market analysis, giving you everything you need in one place. Use the RIC code <LDNXAG=> or type ‘silver’ into Eikon search box. The predecessor of the LBMA Silver price, the silver Fix <XAGFIX> is now discontinued. Real-time users have access to the LBMA Silver Price Chain with aggregated and anonymised bid and offer volumes for each auction round and can be viewed at <0#LDNXAG>. Aggregate buy and sell volumes are only visible once an auction round has ended. Auction round data can be viewed at <LDNAXGAUC1>, <LDNAXGAUC2>, <LDNAXGAUC3> and this chain continues to <LDNAXGAUC250>.
A single, integrated, award-winning data and analytics platform. Get the pricing, reference data and derived analytics you need, in the way you want. The LBMA Silver Price real-time data package, which includes the auction rounds, and the delayed LBMA silver price, which is comprised of the main LBMA Silver Price and the indicative euro and sterling rates with a 15 minute delay, are both available on Datascope select. Delayed data, on Datascope Select however, is only available to non-revendors.
- China Construction Bank
- HSBC Bank USA NA
- JP Morgan Chase Bank
- Morgan Stanley & Co. International plc
- The Bank of Nova Scotia - ScotiaMocatta
- The Toronto-Dominion Bank
- UBS AG
Governance and oversight
The LBMA Silver Price oversight committee reviews and maintains the definition, setting, scope and methodology of the LBMA Silver Price benchmark.
The current members of the committee are as follows:
- Neil Stocks – Independent chairman
- Gavin Lee – CME
- Courtney Lynn – Coeur
- Sakhila Mirza – LBMA
- Julian Day – Thomson Reuters
- Martyn Smith – The Royal Mint
- Bernhard Fuchs – Umicore
- Simon Weeks – Scotiabank
Markets and industries
Get LBMA Silver Price and auction rounds data over the Eikon desktop and Elektron platform, and in DataScope as an end-of-day value.
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