The oversight committee on the LBMA gold price, which is governed by ICE Benchmark Administration (IBA), has grown to 12 members from six in March when IBA assumed the role.
The committee initially comprised Tim Wood of Denver Gold, Robert Hayes of AngloGold Ashanti, Grant Angwin of Johnson Matthey, Simon Weeks of Scotiabank, Ruth Crowell of the LBMA and Emma Vick of IBA.
But IBA now lists 12 committee members on its website – Shekhar Bhandari of Kotak Mahindra Bank in India, Tony Evanson of Brink’s Global Services, Finbarr Hutcheson, Andre Villeneuve and Michel Prada of IBA and Aram Shishmanian of the World Gold Council join the original six, while Crowell has been replaced by LBMA general counsel Sakhila Mirza.
According to ICE, Evanson joined on April 10, Shishmanian on March 19, Bhandari on May 5 and Prada and Villenueve on May 27. Hutcheson has been committee chairman since launch but was not initially listed on the website.
The mix of participants is part of IBA’s aim to ensure that there is a cross-section of experts from the industry who can bring their independent expertise to the benchmark.
The oversight committee is responsible for overseeing the code of conduct and the rules and methodology surrounding the determination of the benchmark, it said on its website.
It regularly reviews the auction methodology, auction process, auction parameters and the eligibility criteria for new direct participants.
London-based IBA, which was established in April 2013 to administer benchmarks, provide the price platform, methodology and overall administration and governance for the LBMA gold price.
ICE does not disclose the names of those selected to oversee ICE’s new gold price benchmarking process. But if the committee were to feel it was appropriate for the names to be disclosed, this stance may change, Hutcheson has said in the past.
The panel of the independent chairs are responsible for overseeing the process although ICE has indicated that it will be looking to make the process electronic in future.
The group is responsible for inputting the starting price to the auction and any adjustments should participants not place orders on that initial figure.
Bank of China became the first Chinese participant in the new benchmark on Tuesday, joining JP Morgan Chase Bank, Scotiabank, HSBC, Société Générale, UBS, Barclays and Goldman Sachs, to bring the total number of direct participants to eight.
(Editing by Mark Shaw)
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