The London Bullion Market Association received 17 responses from 20 entities to its recent "request for information" regarding reform of the London gold market, while presentations and the selection of solutions are expected by Q1 2016, the association said in a statement Wednesday.
The LBMA will be considering RFI responses during the remainder of 2015, "including bilateral discussions with service providers," according to the statement.
The LBMA issued the RFI October 9, inviting potential solution providers to submit information to help the LBMA assess the potential options available to the precious metals market.
The LBMA owns the intellectual property of the London Gold, Silver, Platinum and Palladium Prices and largely represents refiners in the industry, acting as a proxy regulator.
The reforms are believed to be aimed at increasing transparency and liquidity, in the increasingly regulated precious metals market.
The transparency could be in the form of trade reporting similar to US Commitment of Traders Reports, which show weekly movements in long and short positions on COMEX. This is an idea the LBMA CEO Ruth Crowell has discussed publicly.
But the primary aim would be to open a window on the over-the-counter market, according to market sources.
Unlike an exchange, where trading is based around specific contract standards, an OTC market allows for a greater degree of flexibility.
The London gold market has been unperturbed since the RFI announcement, with some sources saying it was perhaps a problem without an answer.
One source said the LBMA needed to be more proactive in the discussions, instead of just taking ideas from applicants. He noted that seeing as they will own the IP they should show more "muscle" to the market and take more of a leading role.
