Standard Chartered and Morgan Stanley have been confirmed in the new IBA gold price benchmarking process, bringing the overall number of participants to 10, the LBMA said on Monday.
The two banks join Bank of China, JP Morgan Chase Bank, Scotiabank, HSBC, Société Générale, UBS, Barclays and Goldman Sachs in the LBMA Gold Price, which formally replaced the near-century-old London Gold Fix on March 20.
Bank of China, which was named the first Chinese bank to join the process last week, will be eligible to participate from June 22 alongside Morgan Stanley and Standard Chartered.
“I am delighted to see two more direct participants join the LBMA Gold Price auction process,” LBMA chief executive Ruth Crowell said. “This adds greater liquidity and transparency to the benchmark. The addition of these two global banks adds a wider international presence and complements Bank of China joining last week.”
Three banks were waiting in the wings to join the benchmark, a source had told FastMarkets in April.
The twice-daily gold fix, which had been in operation since September 12, 1919, came under increased regulatory and media scrutiny. A third-party operator was seen as a critical step in modernising the image of the process, while also providing enhanced transparency and compliance with legislation.
IBA, which was established in April 2013 to administer benchmarks, now provides the price platform, methodology and overall administration and governance for the LBMA gold price.
(Editing by Mark Shaw)
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