Coronavirus COVID-19 - London Market Business Continuity
Thursday, March 26, 2020
Active Communication with Infrastructure Providers
We are liaising closely with the Benchmark Administrators, LPMCL, LPPM, London Vaults, banks and refiners to support their Business Continuity Plans.
All auctions will continue to run daily. IBA & LME have confirmed their Business Continuity Plans (BCP) for remote administration and will work with auction participants to support participation.
LPMCL’s five clearing members each maintain Business Continuity Plans (BCP) in accordance with regulatory requirements. In the event of BCPs being enacted by any member, in a response to the spread of Coronavirus (COVID-19), LPMCL clearing activities will continue in accordance with those plans. All LPMCL Members will mutually cooperate on a best effort basis to provide a full reciprocal service, including but not limited to Processing, Weighing, Allocation and Storage.
Good Delivery Refining Capacity
We are continuously liaising with our full Good Delivery List and our Refiner’s Committee to monitor global refining capacity. As a result we are confident there is more than sufficient global refining capacity. LBMA has 72 accredited Good Delivery gold refiners located in 31 countries. This global reach means that while a few refiners have suspended production as a result of COVID-19, the other Good Delivery refiners are ready and able to accommodate the industry’s needs.
Communicate through LBMA if you expect problems
If you experience or expect problems, please use LBMA to help communicate those issues to others in the market. Please contact firstname.lastname@example.org.
London is Open for Business
Ruth Crowell provides a video update explaining that LBMA are working closely with infrastructure providers and market participants to support the continued smooth functioning of the Loco London precious metals market in light of the Coronavirus (COVID-19) outbreak.
The LBMA Video also includes a Global Response
We also have the latest updates and reaction from key markets in Hong Kong and New York as we hear from (1:06) Jeremy East, LBMA Senior Advisor in Asia, and (3:22) Suki Cooper, Executive Director Precious Metals Research at Standard Chartered Bank.
We will, of course, continue to monitor the situation closely and work with the market to deliver smooth service to its clients. We’re thinking of all in our global community at this time and sincerely hope the situation dissipates soon.