* Participation will begin on Oct. 30, ICE says
* CCB the second Chinese bank to join the LBMA Gold Price
LONDON Oct 22 China Construction Bank
(CCB) will join the twice-daily electronic auction
process to set the benchmark price of gold, its operator
Intercontinental Exchange said in a statement on
CCB on Wednesday confirmed it would be the second Chinese
company to gain access to the 138-year old London Metal
Exchange's trading floor with the acquisition of a majority
stake in UK metals trading firm Metdist Trading Limited.
The gold auction, which takes place each day at 1030 and
1500 London time, sets the London Bullion Market Association
(LBMA) Gold Price, a benchmark used by producers, traders and
end-users globally in contracts and transactions.
CCB will join the process from October 30, ICE said.
"The LBMA Gold Price has seen increased underlying liquidity
this year which is helping attract further new participation and
interest from precious metal industry participants across the
globe," ICE Benchmark Administration president Finbarr Hutcheson
said in the statement.
CCB was also confirmed last week by CME Group as a
participant in the LBMA Silver Price auction, operated by CME
and Thomson Reuters.
CCB is the second Chinese bank to take part in the gold
pricing process after Bank of China was confirmed as a
participant in June, alongside 10 others including HSBC, Societe
Generale and UBS.
"This shows that China is playing a leading role in all
metals, whether it's the industrial suite or the precious. It's
only right that more participants should play a part in price
formation," Societe Generale analyst Robin Bhar said.
"It's noticeable that participation from that part of the
world is not commensurate with their trading activity and
interests, so this makes sense."
ICE Benchmark Administration was named last year as the
operator of the new LBMA Gold Price, which replaced the
century-old London gold fix on March 20.
The precious metals fixes were replaced by the new
electronic auctions, as gold fell under an intense regulatory
spotlight after the Libor interest rate-rigging scandal broke in
(Reporting by Jan Harvey; Editing by Veronica Brown and William