(Adds first name and title in paragraph 8)
* First meeting will be July 7 in London
* Says reformed fix should be based on trades, not quotes
* Should also be a tradeable price, not reference one
By Eric Onstad and Clara Denina
LONDON, June 18 A discussion by gold buyers and
sellers across the market on ways to reform or replace London's
global price benchmark, known as the "fix", will be held next
month by the World Gold Council.
The discussion comes as gold and silver fixes, along with
other commodity benchmarks, face increased scrutiny by
regulators in Europe and the United States following the London
Interbank Offered Rate (Libor) manipulation case in 2012.
WGC, a gold mining industry group, said on Wednesday bullion
banks, refiners, fund firms, central banks and mining companies
had been invited to the forum, with a first meeting scheduled
for July 7 in London. Britain's Financial Conduct Authority will
attend the discussion forum as an observer.
The discussions are separate to the London Bullion Market
Association's (LBMA) process aimed at finding a replacement for
daily silver pricing, which will be disbanded in August.
Members of the association, including gold and silver fixing
banks Deutsche Bank, Scotiabank, HSBC and other large
bullion-trading banks will discuss proposals at a seminar on
Sources say that an electronic solution to the silver fix
could be applied to price-setting for gold and platinum group
But WGC said that would not necessarily be the case.
"We simply seek to convene a debate on the issue ... the
gold and silver market are very different, and it is not
necessarily the case that the solution found to replace the
silver fix is then applied to gold at all," Natalie Dempster,
WGC managing director, told Reuters.
LBMA CEO Ruth Crowell said, "The WGC's perspective from its
gold mining members and the exchange-traded funds investment
community ensures an important dimension to the ongoing
The gold fix - a benchmark used globally across the industry
- is set twice a day via a conference call by four banks, which
work out a standard price based on transactions between their
Barclays Plc and HSBC declined to comment
on whether they would participate in the meeting, while Bank of
Nova Scotia and Societe Generale were not
immediately available to comment.
WGC said the reformed fix should be based on executed trades
rather than quotes and should be a tradeable price, not a
Input data for the new fix should also be transparent,
published and subject to audit, while the benchmark should also
be calculated from a deep and liquid market, the group added.
"It should represent a physically deliverable price, as many
users want to take physical delivery of gold," the statement
Last month, Barclays Plc was fined 26 million
pounds for failures in internal controls that allowed a trader
to manipulate the setting of gold prices, just a day after the
bank was fined for rigging Libor interest rates in 2012.
(Reporting by Clara Denina and Eric Onstad; Editing by Veronica
Brown and Jane Baird)