(according to paragraph a) of paragraph 1 Article 63 of Law 120/2017 of 15 September)
Banco de Portugal - Exchange Rates
There have been a number of changes in recent months to the administrative and governance arrangements relating to the LBMA prices for Gold, Silver, Platinum, Palladium and GOFO. These changes and developments are summarised below.
The new LBMA Gold Price was launched on 20 March 2015. The price continues to be set twice daily (at 10:30 and 15:00 London GMT) in US dollars. Sterling and Euro prices are available but these are indicative prices for settlement only. Market participants will need to reflect the change in name (LBMA Gold Price) in their own contracts and agreements as well as those with clients and counterparties.
The new LBMA Gold Price is operated and administered by an independent third party provider, ICE Benchmark Administration (IBA), who were selected following consultation with market participants. This consensus was reached during the LBMA's market consultation, which involved two market surveys, a seminar and meetings with market participants, solution providers and the regulator. IBA, an independent specialist benchmark administrator, provide the price platform, methodology as well as the overall administration and governance for the LBMA Gold Price. The IBA platform is electronic, auction-based, tradeable, auditable and fully IOSCO-compliant solution for the London bullion marketplace.
With effect from 1st October, 2015 ICE Benchmark Administration are introducing a new commercial model for the LBMA Gold Price. A Usage Licence is required by any party that uses the LBMA Gold Price in valuation and pricing activities. For more information on the LBMA Gold Price please refer to the ICE Licensing arrangements.
On 15th August 2014 the historic Silver Fix which had been in existence since 1897 was replaced by the LBMA Silver Price. The London Silver Fixing Company Limited was wound down from this date and the administrative responsibility for the silver price was transferred to CME Group and Thomson Reuters. CME Group provide the electronic auction platform on which the price is calculated and Thomson Reuters are responsible for administration and governance of the LBMA Silver price. The LBMA are responsible for accrediting price participants and also own the intellectual property rights. The price continues to be set each business day at 12:00 (London time) in US dollars. Sterling and Euro prices are available but these are indicative prices for settlement only. The prices are published on the LBMA's website with a 15 minute delay (see Useful Links section opposite).
This new process for establishing the new LBMA Silver Price will maintain continuity with the earlier silver fixing process for market participants while also increasing transparency via an electronic platform for the auction. It continues to be London-based and offers a fully IOSCO-compliant solution to the London bullion marketplace. The earlier benchmarking process has been followed in order to minimize any possible disruptions and enable a seamless transition for the market. Participants with a Reuters terminal can view the live auction by quoting the RIC 0#LDNXAG. Further details on licensing arrangements for The LBMA Silver Price are available on Thomson Reuters website.
Six price participants have been accredited to contribute to the LBMA Silver Price: HSBC Bank USA NA, JPMorgan Chase Bank, Mitsui & Co Precious Metals Inc, The Bank of Nova Scotia - ScotiaMocatta, The Toronto Dominion Bank and UBS AG.
As of 1st December, 2014 the new LBMA Platinum & Palladium Prices are being independently administered by the London Metal Exchange (LME). These new benchmarks replace the PGM Fixes, historically administrated by the London Platinum and Palladium Fixing Company Limited (LPPFCL). This followed an approach from the LPPFCL to the LBMA to take ownership of the historic and future intellectual property (primarily price data) of what will now be called The LBMA Platinum Price and the LBMA Palladium Price. The prices continue to be set twice daily at 09:45 and 14:00 (London GMT) in US dollars per .9995 fine ounces. Sterling and Euro prices are available but these are indicative prices for settlement only.
Five price participants have been accredited to contribute to both prices; BASF Metals Ltd, Goldman Sachs International, HSBC Bank USA NA, Johnson Matthey plc and Standard Bank plc.
The intellectual property will be held by 'Precious Metals Prices Limited', a newly established subsidiary company of the LBMA. For information on licensing arrangements relating to the prices, including list of data vendors, please refer to the LME's website.
From 13 July, 2015 the prices will be displayed on the LBMA's website with a delay of midnight following the setting of the prices each day. A data licence is required by any party that uses the LBMA Platinum and Palladium Prices. For information relating to data licencing arrangements please refer to the LME's website.