NEW YORK, June 4 (Reuters) - ETF Securities, one of the biggest providers of exchange-traded funds, has submitted a proposal to develop a new global silver price benchmark when the 117-year-old London silver fix is disbanded in August.
The company, which operates precious metals-backed ETFs, has sent a proposed solution to the London Bullion Market Association (LBMA), the Financial Times reported citing founder and chairman Graham Tuckwell.
The plan would involve the London Stock Exchange's auction platform for shares, and result in physically settled transactions, he said.
"From talking to people in the market, I am absolutely confident that this will be benchmark accepted by the LBMA members," he said. "It offers real transparency and the infrastructure is already in place."
In the race to develop an alternative to the London silver "fix," the UK company will be up against big global exchanges, including the London Metal Exchange and CME Group Inc.
(Reporting by Josephine Mason; Editing by Lisa Shumaker)