© 2013 Platts, McGraw Hill Financial. All rights reserved.
The London Silver PriceAdministration and Governance
Jorge Montepeque, Global Editorial Director Markets
Andrew Goodwin, General Manager Metals
London, June 20, 2014
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
• 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
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• 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
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
• 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
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• 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
McGraw-Hill Financial and Platts
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Annual reporthttp://media.mhfi.com/documents/MHFI-ar2013.pdf
http://www.platts.com/about
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
Thank you
Q & A
