Global Precious Metals Code
The Global Precious Metals Code, launched on 25 May 2017 (with some minor amendments made in April, 2018), sets out the standards and best practice expected from market participants in the global Over the Counter (OTC) wholesale precious metals market.
Adherence to the Code
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 the Code. LBMA members will be required to attest their conformance with the Code by signing a Statement of Commitment by 1 June 2018.
To assist members and market participants in adherence to the Code the LBMA has developed a training module in partnership with ACI Financial Markets Association (ACI). This will provide LBMA member institutions and individual practitioners access to an E Learning, Attestation and Certification (ELAC) Portal. By offering access to the ELAC portal, LBMA will ensure its members participate in a standardised, high-quality training and education programme.
The ELAC portal combines illustrative examples and scenarios for precious metal market practitioners across different roles and circumstances building on the ACI ELAC portal developed to assist market participants including Central Banks, Regulators and Operations Personnel with adherence to the FX Global Code of Conduct (FXGC).
The portal is available to subscribers. If you haven't already subscribed you can request a demo account here. The payment schedule to subscribe to the portal can be found here. If you already have an account you can log on to the portal here. For more information please contact Rachel Hart Rachel.Hart@lbma.org.uk at LBMA or Hayley Brooks Hayley@c-view.co.uk.
LBMA hosted a training webinar on 26 April 2018 to provide members with a demonstration of the portal. The recording is available here.
Bank of England
On 6 February 2018, the Bank of England issued a Statement of Commitment to the Code. By doing so the Bank is demonstrating that it is committed to adhering to the principles of the Code when acting as a market participant within the market, and that its internal practices and processes are aligned with the principles of the Code.
The Code has its roots in the Fair & Effective Markets Review published in June 2014. Led by the Bank of England, and co-chaired by the FCA and HM Treasury, FEMR was 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.
The Code is closely aligned with the FX Global Code, which was published on 25 May 2017 by the Bank for International Settlements.
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 2017.