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.

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An employee holds silver granular pieces at the PT Antam Tbk. precious metal refinery in Jakarta January 15, 2009.
REUTERS/Beawiharta

Administrator Statement – 21 July 2017

As announced in March 2017, CME Group and Thomson Reuters have decided to step down from their respective roles in relation to the LBMA Silver Price auction.  On 14 July 2017 the London Bullion Market Association (LBMA) announced that ICE Benchmark Administration (IBA) has been chosen as the new administrator for the LBMA Silver Price.  IBA expects to assume responsibility for the LBMA Silver Price in Autumn 2017.  

During the transitional period, CME Group and Thomson Reuters will continue to operate and administer the LBMA Silver Price and the auction until IBA assumes responsibility and will work to ensure a seamless transition.

Overview

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.

Market Consultation

The consultation concerning the proposed discontinuation of indicative silver prices in EUR and GBP rates ended on the 11 November 2016

Technology Platform

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.

Participants

Direct Participants must be an accredited member of the LBMA. The current direct participants are:
  • 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
  • David Clark - WMBA

Markets and industries

Commodities

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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LBMA Silver Price

The new system for silver prices

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