Summary
This 8-K filing from SPDR Gold Trust (GLD) on February 26, 2015, informs investors about a significant change in the benchmark used to determine the net asset value of the Trust. The long-standing London PM Gold Fix, a critical pricing mechanism for GLD, will be discontinued and replaced by the LBMA Gold Price, administered by ICE Benchmark Administration (IBA). The transition is scheduled for March 20, 2015, and the new LBMA Gold Price will be a physically settled, electronic auction operating in three currencies (USD, EUR, GBP) with real-time price updates. While the LBMA Gold Price is intended to be the successor, the filing highlights potential risks for investors, stating that the change in benchmark could materially affect the Trust's operations and the valuation of its shares. The Trust will continue using the London PM Fix until the transition is complete or deemed inappropriate.
Key Highlights
- 1The London PM Gold Fix, currently used by GLD to determine net asset value, will be discontinued.
- 2A new benchmark, the LBMA Gold Price, will replace the London PM Fix starting March 20, 2015.
- 3The LBMA Gold Price will be administered by ICE Benchmark Administration (IBA) and will be a physically settled, electronic auction.
- 4Pricing will occur twice daily (10:30 AM and 3:00 PM London time) in USD, EUR, and GBP.
- 5The transition to the new benchmark carries potential risks, as it could materially affect the Trust's operations and share valuations.
- 6The LBMA Gold Price will be regulated by the UK's Financial Conduct Authority (FCA) starting April 1, 2015.
- 7GLD will continue using the London PM Fix until the transition is fully implemented, unless deemed unsuitable.