Replies to post #26905 on iShares Silver Trust (SLV)

[hotrod34racer]

That's kind of a trick question isn't it :-D



Cheers Buds \_/

[lady glueck]

The replacement for the 117-year-old London silver fixing benchmark that’s ending Aug. 14 will probably be chosen as soon as one of the companies proposing an alternative wins “critical mass” support from the market, according to the London Metal Exchange.
Garry Jones, the LME’s chief executive officer, and Matthew Chamberlain, head of business development, spoke at a news briefing at the bourse today. The LME, Autilla Ltd., Bloomberg LP, CME Group Inc./Thomson Reuters, ETF Securities Ltd., Intercontinental Exchange Inc. and Platts have made proposals.
Matthew Chamberlain:
London Bullion Market Association “members and market makers have to make the decision. Whether we see an official statement from the LBMA or not,” the market will decide “when one of the players gets critical mass,” he said.
“We do believe in a London market for silver.”
Garry Jones:
“It’s important to keep London the center for metals. Any firm that’s not selected for the silver fix could still start a silver market. Anyone can launch anything. People would be concerned with fragmenting liquidity. No bank would sign off on a system unless it’s been tested to death.
‘‘We wouldn’t set up an alternative reference price” if the LME isn’t selected, he said. “We are looking over time to launch new markets.”
Bloomberg LP is a provider of financial information and trading systems, and is also the parent of Bloomberg News. It competes with Thomson Reuters in selling financial, legal information and trading systems.
http://mobile.bloomberg.com/news/2014-07-01/firm-with-critical-mass-seen-running-new-silver-price.html

[lady glueck]

This is allerting (as I wrote u in may the creeps won't give up):
The International Swaps and Derivative Association (ISDA) published their position on the changing of the “SILVER-FIX” with the new “LONDON SILVER PRICE” and the ramifications are earth shattering for silver derivative holders.

ISDA publishes Bilateral Form of Amendment Agreement for Certain Silver Transactions
http://www2.isda.org/news/isda-publishes-bilateral-form-of-amendment-agreement-for-certain-silver-transactions

When I first saw this announcement I had thought to myself, “It’s about time the ISDA came out with a ruling to replace the ‘SILVER-FIX’ with something identical to use in the outstanding silver derivative contracts.” After all, according to Bloomberg there are nearly $5T in silver derivatives traded every year!

BUT WHAT WAS ANNOUNCED WAS A SHOCKING “GET OUT OF JAIL FREE” CARD FOR THE SILVER DERIVATIVE SHORTS AND GUARANTEED TO THROW THE SILVER DERIVATIVE MARKET INTO CHAOS!!

Basically, the ISDA acknowledges the change in the form of an Amendment but then goes on to clearly state that the implementation of this contractual change it 100% OPTIONAL for all parties involved!!

“ISDA, in consultation with market participants, is issuing this statement in addition to the Amendment Agreement as a means of assisting market participants in treating Affected Transactions. Parties are not obligated to enter into the Amendment Agreement and may choose to negotiate alternative means of treating Affected Transactions.“

Not only that but they clearly state that the “SILVER-FIX” and the “LONDON SILVER PRICE” are NOT interchangeable.

“The Amendment Agreement seeks to replace references to “SILVER-FIX” with a reference to a new Commodity Reference Price, which may include a reference to the new London Silver Price. Parties electing to amend the Affected Transactions through the Amendment Agreement may do so with effect from 15 August 2014.”

END

At issue is billions of dollars worth of silver derivative contracts that mature after August 14, 2014 that have incorporated both the term “SILVER-FIX” as well as reference the ISDA and LBMA as governing bodies related to the setting price defined as the “SILVER-FIX”.

read full
http://www.roadtoroota.com/public/1415.cfm?awt_l=JfdHA&awt_m=3ZCQwHDyO44C85B