The London Metal Exchange (LME) announced today it has successfully launched LMEbullion, a custom-built electronic solution to provide reference prices for the platinum and palladium markets.
The service already began providing the LBMA Platinum and Palladium Prices on December 1st, replacing the previous pricing mechanism run by the London Platinum and Palladium Fixing Company Ltd.
“We are very pleased LMEbullion has been so well received by market participants, and that it is now providing a robust and dependable reference price for the platinum and palladium markets,” said Matthew Chamberlain, the head of business development at the LME.
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“The LME’s administration and governance capabilities, cutting-edge technology, and strong links to both the financial and physical metal industries make it the natural home for the London pricing mechanism. We are also delighted to partner with the LBMA to deliver these prices to the market.”
LMEbullion provides an automated price discovery process, holding two daily auctions. Authorised traders participate through a web interface, where they can view the auction price and each submit their interest until a final price is set. The service also has a public web presence, providing near real-time auction commentary and anonymised buy/sell figures.
The LME says that, looking ahead, it recognises that Asian participants are particularly important stakeholders in the platinum and palladium markets. It hopes to leverage the
unique position of its parent company, Hong Kong Exchanges and Clearing in China, to increase the use of the LBMA prices in Asia.