The 117-year old
The fix is set once a day by banks getting together via telephone to work out a price, based on deals between their clients. It is used by producers, consumers and investors who use it to base contracts on.
The announcement by the
"We don't have a lot of time until
The LBMA said it will approach miners and users of the benchmarks, regulators and potential administrators requesting feedback.
Some users said they were taken aback by the silver fix loss.
"I'm a customer of the fix, and I have to say, I'm completely in the dark about this," one precious metals trader said.
Players have been investigating ways to offer a more transparent way of disseminating information throughout the gold and silver fix. Over the past few months bullion banks have been contemplating a move to electronic platforms to respond to tighter regulatory requirements.
A source close to
"You are likely to see an increased professionalization of benchmarks as an industry," the source said.
"We are always looking at ways to expand our product offering, and are ready to expand our range of price discovery and post-trade tools to further service the precious metals market," the LME said in a statement.
The gold and silver fixes, along with other commodity benchmarks, has come under increasing scrutiny by regulators in
The banks are also facing lawsuits accusing them of alleged gold price manipulation.
The lawsuits have not targeted the silver fix, but in a five-year probe the
After 7,000 staff hours of investigation, the regulator found no evidence of wrongdoing and dropped the probe last September.
The period until then would be used for adjustment, with consultation between clients and market participants.
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