The benchmark division of the U.S.-based Intercontinental Exchange Inc. (ICE) will take over administration of the global benchmark for silver, the London Bullion Market Association (LBMA) Silver Price.
The global trade group for the over-the-counter bullion markets, the LBMA, announced today that ICE Benchmark Administration (IBA) will assume responsibility for overseeing its silver benchmark in the autumn. IBA, which already runs the LBMA's gold price benchmark, will take over from the current administrators, CME Group and Thomson Reuters.
In the wake of the LIBOR market manipulation scandal, global regulators, policymakers, and the financial services sector have been overhauling how benchmarks are set, operated, and governed.
"The decision by the LBMA membership reflects our commitment and investment in making the LBMA Gold Price IOSCO compliant over the last two years," IBA president Finbarr Hutcheson stated in a release. "Our centrally cleared model has already enabled broader participation and we continue to expand the gold auction. We anticipate this will support expanded participation in silver, as well.
"We are excited to build on our work with the LBMA," Hutcheson added, "to ensure strong governance and the evolution of these important benchmarks."