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October 31, 2023 - B2B Liquidity and Technology Provider Finalto announced today that it is expanding its offering to include precious metals fixing for gold and silver. This new service will allow Finalto to provide its clients with the benchmark prices set during the metals fixing processes administered by the London Bullion Market Association (LBMA) twice daily.
The metals fixing mechanism is a collaborative process bringing together representatives from prominent banks, tier-1 financial institutions, and other liquidity providers to set a price driven by supply and demand factors. The fixing involves fifteen direct participants who contribute to verifying the LBMA Gold Price. This benchmarking system ensures that a standard price is set for market participants, bringing transparency, stability, and confidence those trading these commodities.
The LBMA Gold Price is administered independently by ICE Benchmark Administration (IBA) and then offered directly to Finalto clients through our LPs. The fixes for gold start at 10:30am and 3:00pm London time; with the silver fix beginning at 12pm noon. Although the length of time taken to reach an agreed fixing price can vary, Finalto will typically be able to pass on a fixed price for Gold and Silver for the trading period digitally within minutes.
Finalto states that the addition of metals fixing caters to the needs of various market participants, including bullion banks, jewelers, precious metals manufacturers, and traders.
Benefits delivered to Finalto's clientele through metals fixing include:
Market Transparency: Metals fixing provides a clear reference price for traders, ensuring transparency in the market.
Risk Management: With a standardised benchmark, businesses can more accurately hedge their exposures, safeguarding against market volatility.
Opportunities for Traders: An established price offers traders opportunities to devise strategies based on the anticipated movements from the fixed price.
Antony Parsons, Finalto's Head of Liquidity
"Our goal has always been to be at the forefront of financial innovation, responding proactively to market dynamics and client demands," said Antony Parsons, Finalto's Head of Liquidity. "The inclusion of precious metals fixing is a prime example of our commitment to deliver not just solutions, but industry-leading, flexible solutions that empower a diverse range of clients to thrive within a single ecosystem."
The company says its clients can expect similar innovative additions and adaptations of services to meet evolving industry needs moving forward.
If you would like to know more about how Finalto’s services can benefit you or your institution, please contact their sales team.
