LBMA-i Trade Reporting Data
Delivering Transparency for the Global OTC Precious Metals Market
Trade Reporting Weekly Turnover
Total troy ounces. Gold and silver data represents the latest 12 week moving average (to week ending 26 April), platinum and palladium data (the latest four week moving average).
Daily Gold and Silver data and Weekly PGMs Now Published
On 10 April, 2019 LBMA announced the publication of daily trading data for gold and silver via their LBMA-i online service. The service is provided and managed by Simplitium, now a part of Nasdaq, using daily market data reported electronically by LBMA members.
Options Strikes Volume data, for gold and silver displayed in strike price and tenor was published on 13 May. Access to these reports is included within the user subscriptions service.
Originally launched as a weekly report in November 2018, LBMA-i will now enable clients, traders, brokers, investors and researchers to subscribe and download daily LBMA data on trade volumes in precious metals, broken down by date and sub-asset classes, such as options and forwards.
The weekly aggregate trading volumes for gold and silver will remain available on a free to view basis at www.lbma-i.com . All other aggregated and disaggregated daily gold and silver data as well as weekly platinum and palladium data is available on a subscription basis from www.lbma-i.com.
In addition to the gold and silver data sets, LBMA-i includes weekly trade data for platinum and palladium covering spot trading, forwards, swaps, options and loan lease deposits.
- Data Licensing Arrangements
If you would like to subscribe to any of the datasets please contact Simplitium regarding connectivity and licencing at firstname.lastname@example.org. All data for individual sub asset classes
- Further datasets in the Pipeline
Later in Q2 2019 data will be published by volumes in price tranches.
The trade reporting data is provided through the LBMA-i service. Managed by Simplitium, the service collates anonymous and aggregated Trade Reporting data from LBMA members in the Loco London and Loco Zurich markets.
- Why the Data is Important
For the first time in history, LBMA-i market data makes it possible for market participants to gauge the size and shape of the precious metals market. By enhancing the transparency, LBMA-i is assisting the forward market and helping market participants better understand gross turnover and liquidity in loco London and Zurich.
The data demonstrates the overall value of the OTC market, as represented by the LBMA Full members, and then a breakdown of the volume in spot, forward, swaps and loans/leases and deposit.
Not only does it tell us the true size of the market for the first time but the data helps inform LBMA’s dialogue with regulators on matters such as Basel III’s Net Stable Funding Ratio.
- LBMA’s Commitment to Transparency
The Need for a Trade Transparency Reporting Service
The development of LBMA-i has its roots in the Fair and Effective Markets Review (FEMR), which was a comprehensive and forward-looking assessment of the way fixed income, currency and commodity (FICC) markets operate. It was led by the Bank of England, and co-chaired by the FCA and HM Treasury The three organisations published the final report of the review, including findings and recommendations, on 10 June 2015.
Amongst the recommendations was a call for greater clarity in financial markets. While LBMA already issues clearing statistics for gold and silver, it acknowledged that this was not a full picture of the size of the global precious metals markets. Accordingly, LBMA issued a Request for Proposal (RfP) in 2016 to select a partner who could devise an appropriate mechanism to fully determine the size of the OTC traded market for gold, silver, platinum and palladium. In October 2016, the LBMA Board announced that Simplitium had been chosen as the selected trade reporting service provider to deliver LBMA-i. Simplitium had 10 years' operational experience with notable expertise with MiFID I and II reporting, and a 100% track record of no security breaches.
“The LBMA would also welcome further transparency through post trade reporting, providing the industry with data that at the moment does not exist for the bullion market.”
LBMA response to the Fair Effective Markets Review, January 2015.
- How the Service Works
Full members report their trading activity into the LBMA-i platform at the end of every trading day. The data collected forms a number of robust data sets. All spot, swaps, forwards, options, loans/leases/deposits are reported and the reportable data is owned by LBMA.
Client specific data is not included other than just the trade specific information. 28 fields have been agreed as being reportable under every instrument, unlike MiFID II, which requires more than 60 fields.
The seller/lender reports if the trade took place between two LBMA members. However, LBMA members report both buy or sell, if the trade was between a member and a non-LBMA member.
The initial sets of data were published on a weekly aggregated basis on 20 November 2018. On 10 April 2019 daily data was made available on a T+2 basis, licensed directly from Simplitium.
It is mandatory for all full LBMA members to participate in LBMA-i by reporting their transactions, and there are sanctions for companies that do not comply. In line with other trade reporting mechanisms, LBMA-i has established de minimis thresholds in order to be able to collect the majority of data, whilst allowing some smaller traders an exemption from reporting.
LBMA has placed strong emphasis on governance, and the need to ensure that members trade data is secure, confidentiality is appropriately protected and a clear and transparent framework for non-compliance is established. LBMA has developed a governance framework, which clarifies the roles and responsibilities, who has access to data, how conflicts of interests are managed, how large and/or sensitive trades are addressed and the enforcement process. This document is available on the LBMA-i website, which has been developed in consultation with LBMA members, and supported by an external law firm.
In addition, Simplitium, as the operator of trade reporting platform, has been working closely with reporting members to ensure that data security is managed. In 10 years of operation, Simplitium has had no data security breaches since inception. They have formal InfoSec, privacy governance and compliance policies implemented group wide, reviewed and updated annually. They use industry standard practises derived from ISO 27001, SANS, and NIST Cybersecurity Framework, and also regularly schedule third Party security agencies to do penetration testing, auditing and reviews.