By Matthew Cowley
LONDON--JPMorgan Chase & Co. (JPM) has become the seventh
direct participant in the twice-daily auctions to set the LBMA Gold
Price benchmark, according to the price administrator,
Intercontinental Exchange Inc.
The electronic gold benchmark launched on March 20 with six
participants: UBS AG (UBSN.EB) , Goldman Sachs Group Inc. (GS),
Bank of Nova Scotia (BNS), Barclays Bank PLC (BCS), HSBC Holdings
PLC (HSBC) and Societe Generale SA (GLE.FR) .
The new electronic fixes are designed to make the daily market
price benchmark less vulnerable to manipulation. The change from
the old telephone-based system was made given the heightened
regulatory scrutiny around benchmarks in the wake of scandals such
as the manipulation of the London interbank offered rate, or
Libor.
The prices established through the auctions are used by a broad
range of firms, from miners to jewelry makers, to settle gold
trades worth billions of dollars every day.
The intellectual property of the gold price is held by the
London Bullion Market Association, or LBMA, and the platform is
operated by ICE.
Write to Matthew Cowley at matthew.cowley@wsj.com
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