Overhaul of London gold "fix" expected imminently -source

By Jan Harvey and Clara Denina

LONDON, July 16 (Reuters) - A statement on the overhaul ofthe century-old system of benchmarking gold prices is expectedimminently ahead of the implementation of new regulationsgoverning financial benchmarks, a source familiar with thematter said on Wednesday.

Changes to the current gold "fix", a twice-daily auctionprocess between four banks that takes place over the telephone,are likely to include a new code of conduct for participants andthe appointment of an independent chairman, the source said.

The London gold fixing company will also request proposalsto administer the benchmarking process, in a similar process tothat used earlier this year to find a new operator for thesilver fix, the source added.

CME Group and Thomson Reuters were lastweek named as the new operators of an electronic silverbenchmark, in a move that was widely seen preceding sweepingreforms of precious metals price-setting.

Until now responsibility for setting the gold benchmark hasrested with the London Gold Fixing Company, made up of the fourbanks that take part in the fix - Bank of Nova Scotia,HSBC, Societe Generale, and Barclays.

A spokesman for the London Gold Fixing Company declined tocomment on the matter. (Reporting by Jan Harvey, editing by David Evans)