Bank of China Becomes First in Asia to Set London Gold Price

The Bank of China has become the first Asian company to take part in the twice-daily gold auction to set the London Bullion Market Association (LBMA) Gold Price, the Intercontinental Exchange global network ICE Benchmark Administration (IBA) announced Monday.

MOSCOW (Sputnik) — IBA approved Bank of China's addition to the LBMA Gold Price last week.

"We are pleased to welcome the new direct participants to the gold auction today," Finbarr Hutcheson, the IBA president, was quoted as saying in an organization statement.

Morgan Stanley and Standard Chartered join the Bank of China on Monday as direct participants of the LBMA Gold Price, with additional members expected in coming weeks. The China Construction Bank, according to the announcement, is set to become the group's 11th participant.

"We continue to invest in new technology, surveillance and governance to evolve the benchmarks we administer and bring them into a new era of trust and integrity. These enhancements are encouraging more firms to participate and contribute valuable liquidity to the benchmark setting process."

In March, the Beijing Gold Exchange Center's chief gold analyst, Zhang Lei, told Sputnik that China's inclusion would grant the country a "decisive influence" in price-setting capabilities.

The IBA and LBMA replaced a nearly 100-year interbank telephone conference system called the London Gold Fix on March 20. IBA sets gold prices, in US dollars, euros and pounds, during two auctions held at 10:30 a.m. and 3:00 p.m. London time (09:30 and 14:00 GMT) daily.