The London Gold Fixing Ltd has set up a new supervisory to oversee the pricing of the precious metal following a series of regulatory probes into price-rigging.
The company’s new board is made up of compliance officers at the four banks that currently operate the gold ‘fix’, Reuters reported.
The century-old practice saw the banks set the price twice daily after telephone conferences, but will it now operate under more strict regulations.
Besides the new board, an independent chairman is to be appointed and a revamped code of conduct implemented.
The London Gold Fixing Ltd has also put out requests for proposals to find a new company to administer the price benchmark. The same process was carried out for the silver fix earlier this year, which as a result will see it move to an electronic platform next month.
Barclays, HSBC, Societe Generale and Bank of Novia Scotia currently operate the fix. Deutsche Bank stopped participating in May after it cut back its commodity operations.
The German regulator launched a probe into suspected manipulation of the gold price in November, while earlier this month MPs urged the Financial Conduct Authority to investigate the London gold market.