About Membership

Joining the world’s only independent authority for precious metals ensures your organisation gets a seat at the table of an internationally respected body and offers wide-ranging benefits.

LBMA has over 145 Member companies across more than 20 countries around the world. These financial institutions and mining, refining, transportation, trading, vaulting and manufacturing companies enjoy wide-ranging benefits from their membership.

  • Full Members

    Who can apply to become a Full Member of the LBMA

    Full membership of LBMA is available to companies in the UK and abroad. All members must be operational in areas that are closely related to the London bullion market. These activities include trading, broking, shipping and storage, mining, refining, inspection and assaying and research. For companies who trade bullion and derivatives, this means trading bullion or related derivatives, such as forwards and options, in the loco London market with at least three existing members. Membership on the part of individuals is not permitted.


    Application Requirements

    Companies applying for Membership of LBMA need to name three LBMA members as attesters when submitting their application. These should be members with which the applicant has had a bullion-based trading relationship for at least one year. LBMA require each attester to supply a letter of recommendation, confirming the extent of their bullion-based relationship.


    Terminal Markets Order

    Members of the LBMA can trade under the terms of the Terminal Markets Order (TMO). Within the UK, silver and non-investment gold remain under the scope of the TMO under an agreement reached between HM Revenue & Customs and the LBMA. This legislation is a simplification mechanism which applies a “zero rate” of VAT to sales of goods ordinarily dealt with on the market. This enables sales between a Members and between a Member and a non-member to be treated as zero-rated, provided the Member retains effective physical control of the metal, or they ship it outside the UK on behalf of the non-member. These trading arrangements are often referred to as the "Black Box".

    For more detailed information on application requirements, click here.


    Full Member Reviews

    Full Members are reviewed periodically in line with the LBMA Due Diligence Policy. This process is designed to audit continued engagement with the Bullion Market and to ensure that Due Diligence standards are being maintained.

  • Market Making Member

    Market Makers have the same rights as Full members but also have the additional responsibility to quote bid and offer prices, to each other during the London business day, for agreed minimum quantities and tenors in both gold and silver.


    Products in which prices are quoted

    The three products relevant to LBMA market making are Spot (S), Forwards (F) and Options (O). There are twelve LBMA Market Makers who provide the service in one, two or all three products. They are required to make markets by quoting two way prices in both gold and silver to the other Market Makers in the same products. Market Makers offering spot, forwards and options are known as Full Market Makers and those providing only one or two of the products are known simply as Market Makers.


    Who are the LBMA Market Makers?

    Of the twelve LBMA Market Makers, six are Full Market Makers and six Market Makers. The six Full Market Makers quoting prices in all three products are:

    • Citibank N A
    • Goldman Sachs International
    • HSBC
    • JP Morgan Chase Bank
    • UBS AG
    • Morgan Stanley & Co International Plc

    The six LBMA Market Makers who provide two way pricing in either one or two products are:

    • Scotiabank (S,F)
    • BNP Paribas SA (F)
    • ICBC Standard Bank (S)
    • Merrill Lynch International (S,O)
    • Standard Chartered Bank (S,O)
    • Toronto-Dominion Bank (F)

    The benefits of Market Making Membership, apply to all Market Makers, subject to the conditions of the Articles of Association.


    Requirements of Market Makers

    Market Makers are required to respond quickly to requests for prices from other Market Makers, providing two-way price quotations in line with current market conditions, and to offer the service during normal London bullion trading hours. These are 8:00am until 5:00pm or, on days when the New York market is closed, until the London PM gold fixing. There is an understanding between the Market Makers that the maximum quantities for which prices can be requested are as follows:

    Metal

    Spot

    Forwards

    Options

    Gold 5,000 oz 100,000 oz to 6 months 50,000 oz from 6 months to 2 years 32,000 oz from 2 to 5 years * 50,000 oz during the period 1 week to 3 years
    Silver 100,000 oz 1M oz up to 6 months 500,000 oz from 6 months to 1 year 250,000 oz from 1 to 3 years 1M oz from 1 week to 1 year 0.5M oz from 1 to 3 years

    * Most Forward Market Makers will quote gold forwards from 1 to 5 years, on either a swap or an IRS basis at the request of the caller.


    Definitions of Spot, Forward and Options

    Spot (S). The current price in the physical market for immediate delivery of gold. This is normally taken to mean loco London delivery two working days after the date of the deal.

    Forward (F). A transaction in which two parties agree to the purchase and sale of gold at a future date, commonly 1, 3, 6 and 12 months but also for longer dated tenors or dates into the future (see table above). Forward contracts are an important part of many swap arrangements.

    Options (O). This gives the holder the right, but not the obligation, to buy or sell gold at a pre-determined price by an agreed date, for which he pays a premium (or a cost). The premium is the amount of compensation the seller receives from the buyer. The right to buy is commonly referred to as a call option and the right to sell as a put option.

  • Affiliate Member

    Who Can Apply to Become an LBMA Affiliate Member

    Affiliate Membership of the LBMA is available to a range of international market participants, service providers, technology providers, exchanges, intermediaries. It is also open to companies that are active in functions relevant to the London bullion market like mining, inspection, assaying and consultancy related activities. Logistics and vaulting companies who are not active in the Loco London Market may also apply for this classification of membership. Refiners who are interested in applying to become an Affiliate Member need to be accredited as a GDL Refiner before doing so.


    Requirements

    Companies applying to be an Affiliate Member need to name three LBMA Members as attesters as part of their application. These should be companies with whom the applicant has had a bullion-based trading relationship for at least one year. LBMA will require each attester to supply a letter of recommendation, confirming the applicant's suitability for Membership, together with a description of the scope and duration of their bullion-based relationship.

    You can find the list of attesters on the MyLBMA portal alongside additional details regarding the minimum level of attestation required, specific to your company type.


    Affiliate Member Benefits

    Affiliate Members have limited scope to attest to new applicants and, as they will not be active in the Loco London Market, are not eligible to trade under the terms of the Terminal Markets Order. Affiliate Members do have the right to vote at AGMs and to sit on LBMA Sub-Committees and Working Groups. However, this does not include the LBMA Board for which positions are solely for Full Members and Market Making Members. A range of other benefits are also available, including discounted fees for events such as conferences and forums organised by the LBMA, as well as access to publications, all of which foster good trading practices and communication.


    Affiliate Member reviews

    Affiliate Members are reviewed periodically in line with the LBMA Due Diligence Policy. This process is designed to audit continued engagement with the Bullion Market and to ensure that Due Diligence standards are being maintained.

    For more detailed information on application requirements, click here.

  • How to Join

    Your Application

    Full details of the application process and Members obligations can be found within the Rules for Members and Associates.

    Applicants must complete an application form via the MyLBMA portal. Here you will need to provide details on the following:

    • Company Details
    • Business Activity and Organisations
    • Policies and Code of Ethics

    For more information, guidance or support, please contact us at mail@lbma.org.uk.


    Fees

    All Applicants must submit an application fee of £1,000 (plus VAT if applicable). Please note this is non-refundable.

    On admittance to the Association, an annual subscription is payable. Since membership runs from 1 January to 31 December, subscription fees will be adjusted pro-rata throughout the first Membership year. This subscription fee must be paid before the publication of any admittance decision is made. This annual subscription fee may vary from time to time. The fees for 2020 are as follows:

    Market Maker £16,400
    Full Member £8,400
    Affiliate Member £5,250