London: The London silver price mechanism will now be set via an electronic, auction-based mechanism administrated by CME Group and Thomson Reuters, according to a statement from the London Bullion Market Association.

The new mechanism was chosen because it is electronic, “auction-based and auditable and tradable with an increased number of direct participants,” the LBMA said in a statement.

CME Group will provide the price platform and methodology and Thomson Reuters will provide the administration and governance, the LBMA said.

The silver-price setting mechanism, which dates back to 1897, was due to expire on Aug. 14 after participant Deutsche Bank announced its intention to drop out of the process.

According to reports, the way the gold price is set will also likely change soon, with more oversight and an independent chairman.