Would You Risk Going to Jail to Fix the Fix?

by Bron Suchecki
The Perth Mint, Australia

Since my article on the LBMA Silver Price on Friday, more market participants have come out criticising the process:

  • Afshin Nabavi, MKS: “People are going to lose all faith in the fix if this keeps going.” (link)
  • Brad Yates, Elemetal: “When Thursday’s number came in, people initially thought CME would void it, it was so far out of line with the market. When they endorsed it and it became the official print, the benchmark immediately lost credibility. We had two clients shift business away from pricing on the fix to live pricing.” (link)
  • Simon Grenfell, Natixis: “The new silver price setting mechanism appears broken. It is clearly an issue that the regulator should be looking at.” (link)

Continue Reading at Research.PerthMint.com.au…

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