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LBMA &Y2K
Y2K blues
The LBMA is taking no chances with the Y2K bug over the turn of the century. It has set some guidelines to minimise any adverse impact of the bug.There will be no PM fixes on 24th and 30th December 1999. Credit clearing will close at 2pm and inter-broker transfers at 3pm.Clearing members recommended to avoid the movement of physical precious metals between the 23rd December 1999 and 7th January 2000. Allocations should be used between clearing members where practicable.Any spot trades transacted on the 29th and 30th December will be value 5th January 2000. Trades incepted for 4th January 2000 will be for value 6th January.Any mature bullion forward trade should try and avoid the 24th, 29th and 30th December 1999, together with the period between 4th January to 7th January 2000, inclusive, wherever required.The LBMA office will be used as a contingency meeting site in the event that one or more members are unable to enter their own office or communicate with other clearing members due to telephone line problems.All clearing member will lodge client statements, balance sheets and physical records in sealed confidential envelopes, with a contact list detailing phone numbers of key bullion clearing staff with the BoE and the LBMA, at close of business on 29th December 1999.The LBMA executive will call each clearing member by 9am on the 4th January to ensure that they are able to communicate and operate systems without major problems.Comment: Looking at the hectic arrangements made by the LBMA to combat possible fallouts of the Y2K bug, one can imagine the mad scramble in the USA. For in the USA, the Y2K hype has been making the headlines throughout the year. This, as in the USA the level of dependence on computers and the Internet is immense . In contrast, Indian bullion markets are oblivious to the Y2K problem. For one, there is no bullion exchange, therefore the question of electronic transactions dependent on computers does not arise. But can India gloat on its backwardness? Source: Alchemist
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