The London Silver Price
Administration and Governance
Jorge Montepeque, Global Editorial Director Markets
Andrew Goodwin, General Manager Metals
London, June 20, 2014
© 2013 Platts, McGraw Hill Financial. All rights reserved.
Agenda
• Market continuity
• Experience, Capability, Impartiality
• Standards and Governance
• Pre-Fix: enabling price discovery
• Silver Fix: electronic transparent solution
• Information distribution
• Platts/MHFI background information
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Market continuity is key
Enabling continuity of silver benchmark
Protecting market integrity
Enhancing transparency and governance
Platts commitment: Market continuity
• Market continuity is a critical requirement for the integrity
of pricing systems
• Disruption of price-setting processes can cascade and lead
to a wider loss of confidence in markets
• Dependencies on loco London silver prices are not only
global but also for physical and derivative contracts
• Markets always find solutions to cover their needs but a
break in the continuity of market-reflective data provision
could be extremely disruptive
• Platts is committed to ensuring continuity and
improvements, employing proven electronic systems,
robust governance, and impartial administration – now
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Silver Fix
Market continuity in an electronic & compliant environment
Governance and Administration
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Independent chair provides impartiality
Open and transparent systems
Compliant environment
Proven and time-tested technology
Standards of governance
Auditable processes
Experienced and well resourced administration
World class information distribution
Working electronic systems ready to be deployed
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Platts eWindow
• Bespoke communication tool for assessing markets
• Platts intellectual property
• Launched 2007. Deployed in oil, petrochemicals, biofuels and iron
ore markets
• ICE technology partner and matching engine
• Established counterparty vetting process ensures data is from
reliable and market-accepted participants
• Platts eWindow team available to train and support participants
• Governance, compliance and risk
infrastructure is already in place
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Silver Pre-Fix and Fix Video
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Silver Pre-Fix opens
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Silver Fix opens
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Participants enter volume requirements
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Silver chair modifies price
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Chair modifies price again and fix achieved
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Silver Fix price is announced
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Pre-Fix
Providing market value, convergence, and support to the fix
Pre-fix price discovery in a tradable
environment
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Produces a market value to open the Fix
Enables broader participation in price discovery
Adds transparency to the process
Converges with market value
Enables continuity of London Good Delivery as the
global standard for silver
• Established price discovery methodology for physical
delivery
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Information distribution
• Continuity of distribution is vital
• Platts has been a publisher of the Silver Fix for many
years
• 3 main distribution vehicles
– Realtime PMA
– End of day Market Data
– Next day PDF publication Metals Daily
• Available directly, or via major data vendors
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McGraw-Hill Financial and Platts
Annual report
http://media.mhfi.com/documents/MHFI-ar2013.pdf
Price discovery in physical commodity markets is our core competency
• Over 100 years of providing market prices and information
• 1000 employees worldwide, in 15 locations
• Custodian of major global metals, energy and agriculture benchmarks
http://www.platts.com/about
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Thank you
Q&A