A method through which the price of silver is set daily on the London Bullion Market. Three market-making members set the price of silver each day at noon. Clients place their orders with the fixing members, who group all orders before telling the other representatives at the fixing where their price interest lies. Then the price of silver is adjusted up or down until demand and supply are balanced. Customers may change their orders during the fixing process and when that happens the fixing member raises a flag to indicate the change. The price can’t be fixed while a flag is raised. Many financial instruments are priced off the fixing, including options and cash-settled swaps.
The three market making members are the Bank of Nova Scotia-ScotiaMocatta, which chairs the group; Deutsche Bank AG; and HSBC Bank USA. The silver fixing began in 1897.