The London Bullion Market Association (LBMA) today revealed a global precious metals code, which was developed in line with other two codes of conduct across the fixed income, forex and commodities industries.
The Fair and Effective Markets Review (FEMR), which was designed by the UK government to reinforce confidence in the three wholesale markets after banks were fined billions for rigging benchmarks, released a set of guidelines for good practice in the $5 trillion a year London gold market.
The new code applies to all precious metals market participants, and will replace the Bullion Market annex currently within the Non-Investment Products (NIPs) Code. In addition to market conventions, the code will cover principles that should be adopted by members including ethics, compliance, governance and risk management, as well as pre-trade, execution and post trade business conduct.
ATFX Thanks NHS Frontline Workers with 1k Fruit Boxes DonationGo to article >>
The LBMA noted that the code does not impose legal or regulatory obligations on market participants, nor is it a substitute for regulation. Instead, it is intended to serve as a supplement to current regulations by identifying global good practices and processes.
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, added: “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.”