Thomson Reuters/CME silver fix plan confirmed

The move is widely seen as preceding sweeping reforms of precious metals price-setting.

The London Bullion Market Association said in a statement that CME Group will provide a price platform and methodology for the daily process, while Thomson Reuters will be responsible for administration and governance.

The Thomson Reuters/CME Group solution beat six rival proposals. They will start testing the new process in early August. Financial details were not disclosed.

The silver fix - used by producers, consumers and investors - is set every day at noon by three banks via a conference call, working out a price at which their customers are willing to buy and sell the metal. But with increased attention from regulators in the wake of benchmark manipulation in other markets, the current operator - London Silver Market Fixing Ltd - said in May it would stop running the daily call.

The overhaul of the silver fix is likely to mark the beginning of a major revamp of precious metals benchmarks, including the century-old gold fix and the platinum and palladium fixes. ■