The LBMA Silver Price – the crucial daily benchmark used by producers and traders around the world to settle silver products and derivatives contracts – was set 84 cents below the spot and futures price this morning.
The LBMA Silver Price was set at $13.58 per ounce. At the time of the auction, which begins at 12 noon London time, the spot price was at $14.42 per ounce while the futures price on the CME was at $14.415.
The difference between the two was six percent but the benchmark cannot be changed if indeed it was an error, a person familiar with proceedings told FastMarkets.
The matter is being investigated internally, FastMarkets understands.
The price is set every day by five participants – HSBC, JPMorgan Chase Bank, The Bank of Nova Scotia, Toronto Dominion Bank and UBS – using a system run by CME and Thomson Reuters.
(Editing by Mark Shaw)