The London Bullion Market Association (LBMA) is taking steps to maintain the leadership when it comes to help maintain London as the Global Gold Trading Center.
They are putting more stringent rules and practices in place after they have seen several banks and regulators run into rough waters due to negligence which has resulted in losses in the trading of precious metals.
The measures being put into place are not just to change the procedure of fixing the prices. They are being put into place to make the whole process more transparent and hence more secure.
The LBMA, as of now, has a management committee of representatives from eight firms and that includes six banks. The majority of the members have already voted in favor of a new board to regulate the processes going forward.
The new process will not only increase the transparency it will also speed up the process as per the members. They are looking forward to a more streamline process that helps them make better and quicker decisions.
The LBMA currently owns the intellectual property of the gold and silver benchmarks and is looking forward to take over the ownership of platinum and palladium benchmarks too.
The benchmarks are the ones that are widely used by producers, consumers and investors to trade.
LBMA will soon issue a statement to put in effect the new procedures and policies.