(Reworks lead, updates with comment from the LME)
London 16/10/2014 - The London Metal Exchange has pledged to widen and increase the use of London platinum and palladium benchmarks, especially in Asia, after being awarded the administration of the pricing by the LPPM this morning.
The twice-daily benchmark for the Loco London platinum and palladium fix will now be administrated by the LME from December 1 this year.
Exchange chief executive Garry Jones will use the support of its owner, Hong Kong-based HKEx Group, to “increase the use and dissemination of the London prices”, he said in a press release.
The LME's custom-built electronic solution, LMEbullion, will provide the pricing methodology for the benchmarks, which the exchange says meets the administrative and regulatory needs of the market, including IOSCO principles for financial benchmarks, the exchange said.
"The LME’s benchmark administration capabilities, high quality custom-built technology and strong links to both the financial and physical metal industries make the LME the natural home for the London pricing mechanism,” Matthew Chamberlain, head of business development at the LME, said.
The current fixing process is conducted by BASF Metals, Goldman Sachs, HSBC Holdings and Standard Bank.
The London Platinum & Palladium Fixing Company Ltd (LPPFCL) announced on July 31 that, following a review of its fixing process, it would commence an RFP process with a view to appointing a third party to assume responsibility for the administration of the London Platinum and Palladium Fixing in place of the LPPFCL.
Seperately, the LME has declined to comment on whether it has submitted a bid for the gold pricing benchmarks. The administration of the new silver price bechmarking system was awarded to Thomson Reuters and CME Group earlier this year; their jointly run auction-based mechanism rolled out on August 15.
(Editing by Mark Shaw)