London silver fixing company to close by 14 August
The London Silver Market Fixing Limited, the company responsible for the daily fixing of the price of silver in London, is to cease administering the fix as of 14 August.
The company announced that it will work with stakeholders such as Deutsche Bank, HSBC and Bank of Nova Scotia as well as UK regulator the Financial Conduct Authority to find an alternative solution to maintain a London fix going forward.
By closing its doors, the company said that as of 14 August it would no longer publish a daily fix price for silver in London, although it will continue to do so up until that date.
A crucial challenge remains outstanding for market participants however: contracts may be in place that run beyond that date and which reference the daily fix price. But the company said that it “is not in a position to comment on such matters, but market participants can speak to their contractual counterparties.”
The decision to end publishing of a daily London silver market price will not affect other fixes, for metals as gold, platinum or palladium.