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(Adds details, LME CEO quote)
LONDON, June 16 (Reuters) - The London Metal Exchange (LME),competing to offer a replacement for the London silver pricebenchmark setting process when the current system is disbandedin August, said on Monday it could offer three alternatives.
The 117-year old London silver price benchmark - or fix -will cease on Aug. 14, its operator - London Silver MarketFixing Limited - said last month, as regulatory scrutiny ofprice-setting intensifies across markets.
The LME, owned by Hong Kong Exchanges and Clearing Ltd, had already proposed an alternative to the currenttelephone-based method, with better auditing and compliance,Chief Executive Garry Jones told a presentation.
He also said the LME could provide an open-outcry ring basedsolution, referring to the LME's trading pit, or an electronicplatform.
"We are very interested in playing a greater role in thesilver and gold markets," Jones said at the presentation inLondon.
The LME and the Chicago Mercantile Exchange (CME) both saidlast month they were working with the London Bullion MarketAssociation (LBMA) and the precious metals industry to find anelectronic-based solution to the silver fix when the system isdisbanded.
The LBMA will decide which proposal is adopted.
The fix is set every day at noon by HSBC, DeutscheBank and Scotiabank, which get together overthe telephone to work out the price at which their customers arewilling to buy and sell the metal.
The move to disband the silver fix came after Deutsche Bank,a member of the gold and silver fix for two decades, failed toattract a buyer after putting its seats up for sale in January. (Reporting by Eric Onstad and Clara Denina; Writing by SusanThomas; Editing by Veronica Brown and Mark Potter)
