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First Daily Silver Price Set After End of London Fixing

Friday, August 15th

The first London silver price to replace the 117-year-old fixing ritual conducted by a few traders was set today in an attempt to make the process more transparent amid increased scrutiny of benchmarks.

The LBMA Silver Price, set through an electronic, auction-based mechanism, settled after four rounds of negotiations at $19.86 an ounce shortly after noon today, exactly where it ended at yesterday’s final fixing. HSBC Holdings Plc, Bank of Nova Scotia and Mitsui & Co. were accredited to participate, the London Bullion Market Association said today. The sale volume offered was 525,000 ounces and 325,000 ounces were sought.

Silver becomes the first of the precious-metals markets to ditch a daily “fixing” procedure where dealers agree to a price over the telephone. Revamps also are planned this year for fixings in gold, platinum and palladium. Scrutiny on how benchmarks are set increased after regulators uncovered price-rigging in everything from interbank-loan rates to currencies. CME Group Inc. and Thomson Reuters Corp. will run the new silver system everyday at midday in London.

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