More banks will join ICE’s new gold price benchmark in the coming weeks, Finbarr Hutcheson, president of ICE subsidiary ICE Benchmark Administration (IBA), said.
JP Morgan Chase Bank, Scotiabank, HSBC, Société Générale, UBS, Barclays and Goldman Sachs already participate in the LBMA Gold Price, which formally replaced the near-century-old London Gold Fix on March 20.
“We’re expanding that number very soon,” Hutcheson said at the International Derivatives Expo here on Tuesday.
Last month, three more banks were apparently waiting in the wings to join the benchmark, which would bring the total number of participants to 10.
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 benchmark 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)