London Bullion Market Association Is Reviewing Benchmarks

The London Bullion Market Association, the trade group representing the gold and silver market, said it’s reviewing its benchmarks.

“The LBMA is looking into whether our benchmarks conform with Iosco principles,” Aelred Connelly, a spokesman for the association, said by phone today. The review covers gold forward offered rates benchmarks, he said.

The International Organization of Securities Commissions is a Madrid-based group representing regulators from more than 100 countries. It set tougher guidelines for publishing benchmarks in a July 17 report, including making prices based on “observable” deals where possible to increase transparency.

The U.K. Financial Conduct Authority is reviewing gold benchmarks as part of its wider probe of how global rates are set, according to a person with knowledge of the matter, who asked not to be identified because the information isn’t public. The review is preliminary and hasn’t risen to the level of a formal investigation, said the person, who declined to say which gold benchmarks were under scrutiny.

More than $33 billion of bullion was traded in London each day in 2012, according to the London Bullion Market Association. The LBMA’s market-making members include Goldman Sachs Group Inc., Credit Suisse Group AG and Barclays Plc. Gold forward offered rates, known as GOFO, show the interest rate at which dealers will lend metal for dollars.

NI GLDMARKET NI PCSMARKET NI LONDON NI MKST

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