Plans to remove the seller’s premium from next year. Eddie van der Walt (Bloomberg) | 14 July 2015&nbsp20;:09 ICE Benchmark Administration, which runs daily gold price-setting auctions used by mining companies to central banks, will remove a seller’s premium from next year. Following a market consultation, IBA will on Jan. 1 remove the 15 cents-an-ounce premium that’s added to the settled rate in the twice-daily LBMA Gold Price, it said in a statement Tuesday. It also said that if fewer than three direct participants are available to start an auction, it would publish a benchmark price without conducting the procedure. IBA in March started administering the electronic auction that replaced the century-old London gold fixing, a ritual that had been taking place by phone. There are now 10 companies allowed to be direct auction participants, including Bank of China Ltd., which joined last month. “All trades in the auction will be settled at the benchmark price, though clients are free to bilaterally agree the charging structure for their services,” IBA said in the statement. The seller’s premium is thought to have been a way to encourage producers to sell through the London market, it said. IBA said it will continue to also publish settlement prices in euros and pounds. ©2015 Bloomberg News
ICE Benchmark Administration ( IBA ) , which runs daily gold price - setting auctions used by mining companies to central banks , has stated it is to remove a seller 's premium from next year , following a market consultation . As of January 1st , IBA will remove the 50 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 remove a benchmark price without conducting the procedure . At present there are 10 companies who are allowed to be direct auction participants - namely , Bank of China , Goldman ##bank , HSBC Bank USA , JP Morgan , Morgan ##bank , Societe Generale , Standard Chartered , Scotiabank and UBS .