Platinum and Palladium Fixes
The Platinum and Palladium Fixes refer to benchmark pricing mechanisms for platinum and palladium. These fixes are used in the precious metals markets to establish a reference price for these metals. The benchmarks are determined through a daily fixing process conducted by a group of participating market-making banks.
Participants:
The Fix involves a panel of major banks and dealers in the platinum and palladium markets, typically including representatives from financial institutions that are active in London.
Fixing Process:
The fixing process takes place twice daily, once in the morning and once in the afternoon. During each fixing, the participating banks submit their buy and sell orders for platinum and palladium to a fixing administrator.
Calculation:
The administrator calculates the average of the submitted buy and sell orders to determine the benchmark price. The goal is to find a price at which the total buy orders equal the total sell orders.
Fixing Time:
The fixings are conducted at specific times during the trading day, providing a reference price.
Significance:
Market Reference:
The Platinum and Palladium Fixes serve as important reference points for market participants, helping them gauge the prevailing market conditions and make trading decisions.
Contract Settlement:
The benchmark prices established through the fixing process are often used for settling contracts and transactions in the platinum and palladium markets.
Price Transparency:
The fixing process contributes to price transparency in the precious metals markets, providing a standardized and widely accepted reference point for these metals.
It's worth noting that the fixing processes for precious metals have evolved over time, and there have been discussions and reforms to enhance transparency and integrity in these benchmark-setting mechanisms.
As with any financial market practices, it's advisable to check for the latest developments and changes in procedures.
LBMA Platinum and Palladium Price
As of 1 December, 2014 the LPPFCL has ceased to administer the the London Platinum and London Palladium fixing price processes. New benchmarks, the LBMA Platinum Price and the LBMA Palladium Price, are being administered by the London Metal Exchange (LME) by agreement with the London Bullion Market Association. The LME will soon be publishing its own process descriptions and terms of use but in the interim please see the precious metals page on the LME
LPPM has allowed LME to make the LBMA Platinum and Palladium data available on the LPPM website but accepts no responsibility for the accuracy of the data, nor for any loss or damage incurred in reliance on it. The prices can also be found on the LME's website at for platinum and for palladium
The LME shall have no liability for any loss or damage incurred as a result of any errors, inaccuracies or omissions in relation to the LBMA Platinum Price and/or LBMA Palladium Price, or for any delay in publishing the LBMA Platinum Price and/or LBMA Palladium Price, or for any other reason whatsoever in connection with the London Platinum Price and/or London Palladium Price. The LME is unable to provide any warranty relating to the accuracy of the LBMA Platinum Price and/or LBMA Palladium Price and no reliance should be placed on the LBMA Platinum Price and/or LBMA Palladium Price by any person. Unless otherwise stated, the copyright and any other rights in the contents relating to the LBMA Platinum Price and LBMA Palladium Price, including any images and text, shall remain the property of the LME."
For information on licensing arrangements relating to the prices, including a list of data vendors, please refer to the LME's website.
Please visit the LME's website for more information and for Frequently Asked Questions.