The London Metal Exchange (LME) has successfully launched LMEbullion, a custom-built electronic solution to provide reference prices for the platinum and palladium markets.
LMEbullion began providing the LBMA Platinum and Palladium Prices on 1 December, 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, Head of Business Development at the LME.
“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,” Chamberlain added.
LMEbullion provides a fully automated price-discovery process, holding two daily auctions at 9.45am and 2pm. Authorised traders participate through a secure web interface, where they can view the auction price and each submit their interest until a final price is set.
LMEbullion also has a public web presence, providing near real-time auction commentary and anonymised buy/sell figures. Looking ahead, the LME recognises that Asian participants are particularly important stakeholders in the platinum and palladium markets, and hopes to leverage the unique position of parent company Hong Kong Exchanges and Clearing to increase the use and dissemination of the LBMA prices in Asia.
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