Forward gold rate data will be collected, available from LME

The London Metal Exchange (LME) and the London Bullion Market Association (LBMA) will begin collecting data for forward gold rates from September.

The new venture will see the publication of gold rates up to ten years forward. This will bring new transparency to the London gold bullion market where currently only spot rates are distributed.

The LBMA Gold Forward Curve will be created from data supplied by the LBMA’s eight forward market makers, which include some of the world’s biggest banks.

Their data will be processed by the exchange’s LMEdcs system and distributed to subscribers by the LME’s network of licensed data distributors from early next year.

“This partnership with the LBMA demonstrates that both organisations and their memberships are willing and able to work closely together for the benefit of the London market in a changing financial climate,” said Joanna Stuart, the Project Lead on Precious Metals at the LME. “The LME has many capabilities and experience that it can share with the LBMA and help the latter maintain its leading position in the OTC gold forward markets.”

The LBMA Forward Curve will serve the need for transparency and information in the vibrant OTC bullion market and the LME and LBMA aim to launch further data series.

“This is a very significant development in the history of the LBMA,” said Stewart Murray, Chief Executive of the LMBA. “I would like to thank the eight Market Makers for their positive attitude and the flexibility which they showed during the past six months of negotiation.”

The project is entirely separate to the LME’s joint venture with LCH.Clearnet to launch a clearing service for OTC gold forward contracts from November 29.

It is also independent of The London Gold Market Fixing Ltd. This company, composed of five LBMA market makers, publishes an internationally recognised benchmark in the form of the twice daily gold fix at approximately 10:30 am and 3 pm UK time.

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