Mumbai: The century-old practice of fixing silver prices by London Silver Fixing Co Ltd will end on Aug 14, when the London body that administers the process with three member banks will stop publishing the price, the company said in a notice late Tuesday.
The silver price fixed by the London body has been used as a benchmark across the world by consumers and stakeholders. “With effect from the close of business on 14 August 2014, the company will cease to administer a silver fixing, and a daily Silver Fixing Price will no longer be published by the company,” it said.
Until then, Deutsche Bank AG, HSBC Bank US, and the Bank of Nova Scotia will remain members of the company and will administer the silver fixing. Started in 1897, the fixing process was amended periodically.
Since 1999, the fixing has been carried out once a day at 1200 IST by the three member banks via telephone conference. The London Bullion Market Association has expressed willingness to assist with discussions among market participants on whether there is a need to develop an alternative to the London silver fixing, said London-based bullion broker Sharps Pixley Ltd in an e-mail communication.
The gold price fixing by London Gold Fixing Co Ltd, along with members banks Societe Generale, Scotiabank, HSBC, and Barclays, will continue.
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