The 95-year-old process for setting London’s gold price benchmark will have independent supervisors for the first time under plans announced on Wednesday to defend the market against allegations of rigging.
The body that runs the gold fix, London Gold Market Fixing Limited (LGMFL), said a third party would be appointed to administer new rules.
It marks the first time since the benchmark was set up in 1919 that banks will not bear responsibility for the gold fix, which has come under heavy scrutiny after scandals related to other benchmarks such as Libor.
LGMFL said it would invite proposals from potential overseers such as financial data providers, before appointing one. Thomson Reuters and CME Group, the trading exchange, recently won a battle to operate the process for setting the silver price benchmark, which is also being reformed.
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