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Silver Fixing Company to Stop Running London Benchmark

Wednesday, May 14th

The company that runs the London silver fixing, a benchmark dating back more than a century, will stop running the process after Deutsche Bank AG said two weeks ago that it was dropping out of the price-setting ritual.

The London Silver Market Fixing Ltd. will stop administering the fixing on Aug. 14, it said today in a statement. Until then, Deutsche Bank, HSBC Holdings Plc and Bank of Nova Scotia will remain the three members of the company, which will liaise with the U.K. Financial Conduct Authority. Alternatives may be available. The London Bullion Market Association started a consultation and will work with the market, regulators and potential administrators.

Regulators have been stepping up their scrutiny of how gold and silver prices are set in the wake of the London interbank offered rate-manipulation scandal. The FCA is visiting member banks involved in the gold fixing as part of its review of gold benchmarks, a person with knowledge of the matter said last month. The watchdog hasn’t leveled any accusations that the process is being manipulated. Deutsche Bank has said it is leaving fixings as it scales back its commodities business.

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