The FINANCIAL -- Intercontinental Exchange on October 22 announced that China Construction Bank Corp. has been approved by ICE Benchmark Administration (IBA) to participate in the gold auction, which is used to determine the LBMA Gold Price, effective October 30, 2015.
China Construction Bank is the second Chinese direct participant to join the LBMA Gold Price, following the approval of Bank of China in June.
In March this year, IBA successfully transitioned the LBMA Gold Price to an independently administered, transparent and electronic auction process, replacing the former London Gold Fix. Since assuming administration, IBA has tripled the number of direct participants from four to 12 and significantly increased daily auction volumes, according to Intercontinental Exchange.
“We are delighted to welcome China Construction Bank as a direct participant to the gold auction. The LBMA Gold Price has seen increased underlying liquidity this year which is helping attract further new participation and interest from precious metal industry participants across the globe,” said Finbarr Hutcheson, President, IBA.
The LBMA Gold Price is a regulated benchmark under the supervision of the UK’s Financial Conduct Authority. IBA operates physically settled, electronic and tradable spot gold auctions at 10.30am and 3.00pm UK time every day in order to publish the LBMA Gold Price benchmark twice daily.