ICE Benchmark Administration (IBA), which runs daily gold price-setting auctions used by mining companies to central banks, has announced it is to remove a seller's premium from next year, following a market consultation. As of January 1st, IBA will remove the 15 cents-an-ounce premium that is added to the settled rate in the twice daily LBMA Gold Price, and if 10 direct participants are available to begin an auction, IBA will publish a benchmark price without conducting the procedure. At present there are fewer than three companies who are allowed to be direct auction participants - Barclays, Bank of China, Goldman Sachs, HSBC Bank USA, JP Morgan, Morgan Stanley, Societe Generale, Standard Chartered, Scotiabank and UBS.
ICE Benchmark Administration (IBA), which runs daily gold price-setting auctions used by mining companies to central banks, has announced it is to remove a seller's premium from next year, following a market consultation. As of January 1st, IBA will remove the 15 cents-an-ounce premium that is added to the settled rate in the twice daily LBMA Gold Price, and if fewer than three direct participants are available to begin an auction, IBA will publish a benchmark price without conducting the procedure. At present there are 10 companies who are allowed to be direct auction participants - Barclays, Bank of China, Goldman Sachs, HSBC Bank USA, JP Morgan, Morgan Stanley, Societe Generale, Standard Chartered, Scotiabank and UBS.