February 19, 2015 / 3:10 PM / 4 years ago

UPDATE 1-ICE to replace London gold "fix" from March 20 - LBMA

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LONDON, Feb 19 (Reuters) - ICE Benchmark Administration (IBA) will run an electronic gold price benchmark from March 20 to replace the century-old London process known as the “fix”, the London Bullion Market Association (LBMA) said on Thursday.

IBA, a subsidiary of the Intercontinental Exchange, will provide the price platform and methodology as well as the overall administration and governance for what will become the LBMA Gold Price.

Three exchanges will run price benchmarks for gold, silver, platinum and palladium, with banks and brokers submitting their orders during the transaction-based process.

The Chicago Mercantile Exchange, jointly with Thomson Reuters, kicked off the overhaul, taking over administration of the silver benchmark in August.

The London Metal Exchange, part of Hong Kong Exchanges and Clearing Ltd, has been running the platinum and palladium fixes since December.

The LBMA said in November that 11 entities intended to place bids and offers during the setting of the gold price.

But a lack of clarity around how the gold benchmark would be regulated has cast some doubt on whether that number could be achieved, market participants said.

Britain’s Financial Conduct Authority (FCA) has yet to disclose whether the new gold benchmark will be seen as a submission-based process, such as Libor, which is derived from an average of bids submitted by banks.

Gold and silver were included in the list of seven benchmarks that would be regulated by the FCA from April. (Reporting by Clara Denina; Editing by Veronica Brown and Dale Hudson)

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