Enquire Now
Please provide your details to reserve space at Guardian Vaults.
Enquire Now
Please provide your details to reserve space at Guardian Vaults.
Enquire Now
Please provide your details to reserve space at Guardian Vaults.
Enquire Now
Please provide your details to reserve space at Guardian Vaults.
Enquire Now
Please provide your details to reserve space at Guardian Vaults.
The World Gold Council (WGC) intends to explore reforms to the London Gold Fix in an effort to modernise the system.
The organisation, which is the market development body for the gold industry, announced it will host an industry discussion forum to discuss potential changes.
According to the WGC, the Financial Conduct Authority will be in attendance as an observer, while a number of representatives from all corners of the sector are expected to participate.
Bullion banks, ETF and other gold investment product sponsors, central banks, mining companies and industry bodies will all be invited to the first meeting, which will take place on July 7 in London.
The fix, as it is often abbreviated, is a global pricing benchmark that is set twice daily following a conference phone call between four major banks. A standard price is decided based on their clients’ transactions.
Managing Director of Central Banks and Public Policy at the WGC Natalie Dempster said making amendments to the fix is long overdue.
“The fixing process was established almost a century ago, so it is not surprising that it needs to change to meet today’s market expectations for enhanced regulation, transparency and technology,” she explained.
“Modernisation is imperative in order to maintain trust across the industry. This could come in the form of reform to the fix to bring it in line with the IOSCO principles or it could see an alternative price benchmark emerge.”
One of the key changes the WGC highlighted is making the fix more representative of the physically deliverable price of gold. This is because many people buying gold now ask for delivery of their precious metals.
Other issues include basing the fix on executed trades rather than quote submissions, and making input data highly transparent, published and open to audits.
Gold and Silver News
From Guardian Vaults
WGC calls meeting to reform London Gold Fix
The World Gold Council (WGC) intends to explore reforms to the London Gold Fix in an effort to modernise the system.
The organisation, which is the market development body for the gold industry, announced it will host an industry discussion forum to discuss potential changes.
According to the WGC, the Financial Conduct Authority will be in attendance as an observer, while a number of representatives from all corners of the sector are expected to participate.
Bullion banks, ETF and other gold investment product sponsors, central banks, mining companies and industry bodies will all be invited to the first meeting, which will take place on July 7 in London.
The fix, as it is often abbreviated, is a global pricing benchmark that is set twice daily following a conference phone call between four major banks. A standard price is decided based on their clients’ transactions.
Managing Director of Central Banks and Public Policy at the WGC Natalie Dempster said making amendments to the fix is long overdue.
“The fixing process was established almost a century ago, so it is not surprising that it needs to change to meet today’s market expectations for enhanced regulation, transparency and technology,” she explained.
“Modernisation is imperative in order to maintain trust across the industry. This could come in the form of reform to the fix to bring it in line with the IOSCO principles or it could see an alternative price benchmark emerge.”
One of the key changes the WGC highlighted is making the fix more representative of the physically deliverable price of gold. This is because many people buying gold now ask for delivery of their precious metals.
Other issues include basing the fix on executed trades rather than quote submissions, and making input data highly transparent, published and open to audits.
Disclaimers: Guardian Vaults Holdings Pty Ltd, Registered Office, Scottish House, 100 William Street, Melbourne, Victoria, 3000. ACN 138618176 (“Guardian Vaults”) All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from the publisher and/or the author. Information contained herein is believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal situation. Guardian Vaults, its officers, agents, representatives and employees do not hold an Australian Financial Services License (AFSL), are not an authorised representative of an AFSL and otherwise are not qualified to provide you with advice of any kind in relation to financial products. If you require advice about a financial product, you should contact a properly licensed or authorised financial advisor. The information is indicative and general in nature only and is prepared for information purposes only and does not purport to contain all matters relevant to any particular investment. Subject to any terms implied by law and which cannot be excluded, Guardian Vaults, shall not be liable for any errors, omissions, defects or misrepresentations (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (direct or indirect) suffered by persons who use or rely on such information. The opinions expressed herein are those of the publisher and/or the author and may not be representative of the opinions of Guardian Vaults, its officers, agents, representatives and employees. Such information does not take into account the particular circumstances, investment objectives and needs for investment of any person, or purport to be comprehensive or constitute investment or financial product advice and should not be relied upon as such. Past performance is not indicative of future results. Due to various factors, including changing market conditions and/or laws the content may no longer be reflective of current opinions or positions. You should seek professional advice before you decide to invest or consider any action based on the information provided. If you do not agree with any of the above disclaimers, you should immediately cease viewing or making use of any of the information provided.