Uncertainty Abounds as Market Awaits New Silver Benchmark

The Financial Times reported that although just three trading days remain before the replacement for the London silver fix is put in place, uncertainty remains about who will be participating.

As quoted in the market news:

Since there is no centralised clearing for precious metals markets, the initial users of the new benchmark are expected to be the 11 market-making members of the London Bullion Market Association, which include Credit Suisse, JPMorgan, Goldman Sachs and UBS.

But so far no one has publicly stepped forward to say they will be involved even though testing of the system has gone without a hitch. The CME Group, whose Comex exchange offers the biggest silver futures contract, is providing the electronic price platform and the algorithm that will be used to set the auction’s opening price. Thomson Reuters will take care of the governance and administration.

That said, the news outlet also notes that the uncertainty is “only to be expected” and the list of participants may simply be released Friday.

Click here to read the full Financial Times report.