* Company set to appoint administrator, independent chairman
* Platinum, palladium fixers follow gold benchmarkers with
* Scrutiny of benchmarks increased after LIBOR manipulation
By Jan Harvey and Clara Denina
LONDON, July 31 The London platinum and
palladium fixing company (LPPFC) is seeking a third-party
administrator for its price benchmarks, it said on Thursday,
following a similar move by the operators of the gold "fix"
earlier this month.
The company is also finalising arrangements to appoint an
independent consultant to chair the twice-daily fixing calls for
platinum and palladium.
Scrutiny has been increasing over the way precious metals
benchmarks are set ahead of the implementation of stricter
regulations on price setting from the International Organization
of Securities Commissions (IOSCO) this year.
Regulators across Europe, the United States and Asia have
also stepped up scrutiny of financial benchmarking processes
following the Libor manipulation case in 2012.
The platinum and palladium benchmarks, or fixes, are
currently set through a telephone call between four participants
- Standard Bank, Goldman Sachs, BASF Metals Ltd
The LPPFC said in a statement it will soon be soliciting
proposals for a third party to run the benchmark-setting
processes for platinum and palladium. The deadline for
expressions of interest is Aug. 6.
"(The company) will be liaising with the Financial Conduct
Authority and other stakeholders during this RFP (request for
proposals) process," it said.
The platinum fixing company said it had adopted a new code
of conduct and had set up a supervisory committee to oversee the
fixing process ahead of the request for proposals, following a
review of its practices with reference to the IOSCO principles.
The banks who run the fixing process for gold said earlier
this month they were also seeking an external administrator, as
well as appointing an independent chairman. They expect a new
process to be in place by end 2014.
A similar process recently took place in the silver market,
which yielded an electronic auction mechanism to replace the
daily conference call. That mechanism will be run by CME Group
and Thomson Reuters.
(Editing by Jason Neely and David Holmes)