LBMA – London Fix

The London Fix, also known as the Gold Fix or the Silver Fix, was a daily benchmarking process used by the London Bullion Market Association (LBMA) to set the price of gold and silver. It was used to determine the price at which the metal was traded in the London market, and it was widely used by traders, miners, and refineries as a reference point for pricing and settling their transactions.

The London Fix was established in 1919, and it involved a group of five member banks of the LBMA meeting twice a day to set the benchmark price for gold and silver. During the meetings, the banks would share information about supply and demand in the market, and they would negotiate the price at which they were willing to buy and sell the metal. The benchmark price was then used as a reference point for all trades and settlements in the London market for the next 24 hours.

In 2014, the LBMA announced that it was replacing the London Fix with a new electronic benchmarking system called the LBMA Gold Price and the LBMA Silver Price. The new system uses an electronic platform to gather and process data from a larger pool of market participants, including banks, brokers, and trading firms. The LBMA Gold Price and LBMA Silver Price are calculated twice a day, using the same methodology as the London Fix, and they are published on the LBMA’s website and on financial news services.

The LBMA enforces the London Fix, and now the LBMA Gold Price and LBMA Silver Price, by setting and enforcing strict standards for market participants. All participants must be members of the LBMA, and they must adhere to the association’s code of conduct, which includes requirements for transparency, fairness, and ethical behavior. The LBMA also conducts regular audits and inspections of its members to ensure that they are complying with the association’s rules and regulations.

In addition, the LBMA has established a surveillance and enforcement program to monitor the market and investigate any instances of misconduct or manipulation. The program includes the use of sophisticated surveillance technology and data analysis to detect any irregularities in the market, as well as a team of enforcement experts who investigate any suspected misconduct.

Overall, the London Fix, and now the LBMA Gold Price and LBMA Silver Price, is an important benchmark for the global gold and silver markets. The LBMA plays a critical role in setting and enforcing the benchmark, and its work in promoting transparency, fairness, and integrity in the market helps to ensure that the benchmark is accurate and reliable.