The London Metal Exchange (LME) will discontinue its twice-daily benchmark auctions for platinum and palladium starting mid-2026, as the exchange shifts its focus toward its core base metals business. The LBMA Platinum and Palladium Price auctions, which provide reference prices used widely in contracts and transactions, also offer liquidity for large-volume traders. Since 2014, the LME has administered these auctions electronically, replacing a previous phone-based system, as part of broader reforms—similar changes were implemented in the gold and silver markets amid growing scrutiny of benchmark-setting practices.
Jamie Turner, LME chief operating officer, said the auctions “no longer represent a core activity” and that transitioning pricing to a new venue is in the best interests of both the exchange and the market. Ruth Crowell, CEO of the LBMA, which oversees London’s precious metals markets, noted that the administrator of the auctions would be announced in January, while gold and silver auctions continue under ICE Benchmark Administration.
Currently, six participants have direct access to the platinum and palladium auctions: BASF Metals Ltd., Goldman Sachs Group Inc., HSBC Holdings Plc, Johnson Matthey Plc, ICBC Standard Bank Plc, and StoneX. The auctions’ history includes regulatory challenges; notably, last year, units of Goldman Sachs and HSBC were among four firms that paid a combined $20 million to settle claims of price manipulation in platinum and palladium markets after a decade-long legal process.
