Gold market rife with rumors of likely LBMA partner to increase transparency
Sunday October 2, 2016
The bullion market was awash with rumors September 30 relating to the possible winner of the recent request for proposal by trade body the London Bullion Market Association, with Autilla a standout name as a possible contender to be awarded the contract to increase market transparency.
One source close to the situation said that the tech company appeared to be in a strong position to take the RFP and start trade reporting, among other things, in a bid to modernize the London market.
“It would be premature to comment at this stage as no legal agreements have been signed with any provider,” Ruth Crowell, chief executive of the LBMA, said in a generic email to the media.
The LBMA said February 4 that five service providers had made the final cut to submit an RFP to increase transparency in the London bullion market, widely believed to be CME Group, the London Metal Exchange, IntercontinentalExchange, Autilla/Cinnobar and Markit/ABS.
None of the parties, nor the LBMA, would comment on the specifics of the matter.
According to the trade body, “the purpose of these new services is to address the immediate regulatory, cost and growth requirements of the market, which will connect via a technology interface called the LBMA-i.”
There had been media reports that this list had been whittled down to three, although S&P Global recently learned from a source close to the situation that all five remain in the running.
Participants have become overall disgruntled by the process, which is now seen as cumbersome and disjointed, several sources ranging from bankers to brokers have expressed.
The LBMA have said that they will announce the selected party at its annual conference, this year in Singapore, mid-October.
Earlier this year Crowell told S&P Global Platts that the LBMA’s vision is to increase its power to be able to act, as a voice of the market, and represent its members should the need arise.
Crowell was responding to recent criticism from certain quarters that — as the industry body — it has been slow to respond to some situations.
Regarding the RFP process, Crowell said there is still a lot of work to be done; “if there were a simple solution, it would be implemented already.”
One source said that his money was on Autilla.
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