LMBA Silver Price Consultation Survey Responses Call for Electronic Silver Fix

The London Bullion Market Association ("LMBA") concluded its London Silver Price Consultation survey, which indicated the general consensus that an electronic, auction-based benchmark should replace the London silver fix.

The 440 participants in the survey also called for a tradable pricing system with an increased number of direct participants. More specifically, responses to the survey included:

• an average rating of 7.5 out of 10 regarding the usefulness of the current London silver price mechanism;
• 64 percent of respondents said they use the silver price mechanism daily, 24 percent said periodically and 7 percent said never;
• 72 percent of respondents said the silver price discovery method is sufficient, while 28 percent said it is not; and
• 25 percent of respondents said they would consider acting as a contributor, 44 percent said they would not and 31 percent said maybe.

In response to the survey results, the LMBA launched a request for proposals from those companies that had expressed an interest in becoming the price administrator for the silver price.