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LBMA Launches Global Precious Metals Code
25 May 2017
The LBMA is pleased to announce the launch of the Global Precious Metals Code. This first issuance of a stand-alone code of conduct for the wholesale precious metals market represents an important step in market development.
The Code is intended to define a robust, fair, effective and transparent market where all participants are able to transact following best practice guidelines.
It sets out a common set of principles to promote the integrity and effective functioning of the global market covering ethics, governance, compliance and risk management, information sharing and business conduct.
All market participants involved in the global wholesale precious metals market are expected to act according to the principles of this Code. LBMA members will be required to attest their conformance with the Code by signing a Statement of Commitment.
The Code has been prepared by the LBMA following an extensive period of consultation with its Members as well as participants from the wider Precious Metals market.
The LBMA’s Precious Metals Code Working Group (PMCWG), with expertise in the regulatory aspects of the precious metals market, assisted with the preparation of the Code and will continue to help to ensure that it remains fit for purpose.
The Code is accompanied by an Explanatory Note which provides guidance on how the Code may be used and implemented.
Dr Paul Fisher, Chairman of the LBMA commented “The Code is an important step forward to build greater trust, consistency and transparency throughout the market. I would strongly encourage all participants in the global precious metals markets to follow the principles it sets out.”
Ruth Crowell, Chief Executive of the LBMA commented “I would like to thank all Members, market participants and LBMA staff who contributed to the preparation of the Code. And in particular our newest Executive Director, Sakhila Mirza.”
In June 2014, the Fair and Effective Markets Review (FEMR) was launched in order to conduct a comprehensive assessment of the Fixed Income, Currency and Commodities markets.
The objective was to restore trust in the markets and influence cross border discussion on trading practices. In total, FEMR has led to the development of three separate Codes for the Fixed Income, Currency and Commodities markets.
The Global Precious Metals Code published by the LBMA replaced the bullion annex of the Non-Investment products (NIPs) Code.
It is the intention, as far as practically possible, for this Code to be aligned with the FX Global Code, which will be also published on 25 May by the Bank for International Settlements.The Press Release is here and the code here.
A new voluntary UK Money Markets Code setting out the standards and best practice expected from participants in the deposit, repo and securities lending markets was published by the Bank of England on 26 April.
For further information please contact Aelred Connelly, PR Officer, on tel: +44 (0)20 7796 3067, email@example.com