SINGAPORE--(Marketwired - Oct 16, 2016) - The Singapore Bullion Market Association (SBMA) today announced the launch of a joint feasibility study between the SBMA, LBMA and ICE Benchmark Administration (IBA). The study will focus on customers' needs for a LBMA Pre-AM Gold Price at 14:00 Singapore Time (06:00 GMT). This initiative is supported by International Enterprise (IE) Singapore, the government agency driving international trade. It catalysed the development of Singapore as a leading centre in the precious metals market.
Singapore is today an established global trading hub in Asia with a complete ecosystem for the energy, agri-commodities and metals & minerals trading clusters, including precious metals like gold. Currently, Singapore is a well-established price discovery centre for Asian oil products and natural rubber.
The new price would be in addition to the existing LBMA Gold Price "AM" and the LBMA Gold Price "PM." IBA will be the administrator of the LBMA Gold Price Pre-AM and will provide the auction platform and methodology as well as oversight and governance. As such IBA would be the administrator for all three price benchmarks, bringing continuity and a consistent approach to the auction process for all three prices.
The introduction of the LBMA Gold Price Pre-AM would make the benchmark prices truly global by bridging the gap between the close of the US market and the opening of the London market. The new benchmark would therefore provide customers with a daily price at 14:00 Singapore time (06:00 GMT), in addition to the current 10:30 and 15:00 (London time) prices.
Like the existing AM and PM LBMA Gold Price Benchmarks, IBA would operate a physically settled, electronic and tradable auction process. The auction would be set in dollars per ounce for loco London gold and benchmark prices would be set daily at 14:00 Singapore Time in multiple currencies: USD, SGD, CNY, CNH, AUD, CAD, CHF, INR, JPY, SAR, EUR and GBP. Benchmark prices will be published in both per ounce and per gram.
The feasibility study will determine the need for an additional Pre-AM benchmark and gold auction from existing market participants and the wider Asian based precious metals community.