The London Bullion Market Association
Tuesday 16th June 2015
LBMA Gold Price - Bank of China joins as new participant
The LBMA today is pleased to announce that the Bank of China has been approved by ICE
Benchmark Administration (IBA) to participate in the LBMA Gold Price auction process,
administered by IBA.
On 20 March, 2015, IBA successfully transitioned the LBMA Gold Price to an
independently administered, transparent and electronic auction process, replacing the
former London Gold Fix, which was established in 1919.
The addition of the Bank of China takes the total number of direct participants, who
currently participate in the auction process, to eight: Barclays Bank, Bank of China,
Goldman Sachs International, HSBC Bank USA NA, JP Morgan, Societe Generale, The Bank
of Nova Scotia - ScotiaMocatta and UBS.
Ruth Crowell commented “I am delighted to see the growth in the number of direct
participants to the LBMA Gold Price auction process. In particular, I welcome the addition
of Bank of China. As one of the LBMA’s founding members, it is appropriate that they
should be the first Chinese participant”.
"We are proud to become the first Chinese and Asian bank to participate in the gold
auction which is used to determine the LBMA Gold Price.” said Yu SUN, General Manager,
Bank of China London Branch & CEO, Bank of China (UK) Limited. “Bank of China joined
the LBMA as an initial member in 1987, and has been actively participating in the gold
trading business in London for over forty years. Although being the world’s largest gold
producer and consumer, China has never played a major role in the global gold fixing.
Bank of China’s direct participation in the gold auction would reinforce the connection
between the Chinese domestic market and overseas markets, make the international gold
price better reflect the supply and demand in China, and help to promote the
internationalization of the Chinese gold market.”
IBA operates twice daily, physically settled, electronic and tradable spot gold auctions at
10.30am and 3.00pm UK time. The price formation is in US Dollars (USD), with indicative
settlement prices in Euro (EUR) and Pound Sterling (GBP). At the end of the auction IBA
publishes the benchmark in USD, EUR and GBP. Since April 1, 2015, the LBMA Gold Price
is a regulated benchmark under the supervision of the UK’s Financial Conduct Authority
(FCA). The LBMA holds the Intellectual Property (IP) rights for the price.
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