Rules for Members & Associates

Rules for Members and Associates have been established to provide a consistent and transparent set of requirements that all Members and Associates of LBMA must meet.

The Membership Rulebook provides information for both new and existing members on how the LBMA regulates its membership to ensure the highest standard of transparency and quality assurance for the precious metals market.

Download the current Rules for Members & Associates.

  • Principles

    Principle 1 – Integrity: A Member/Associate must act with integrity including by adopting best practice and responsible business practices, and must be open and cooperative in its dealings with LBMA.

    Principle 2 – Skill, care and diligence: A Member/Associate must conduct its business with due skill, care and diligence.

    Principle 3 – Management and control: A Member/Associate must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems.

    Principle 4 – Financial prudence: A Member/Associate must maintain adequate financial resources and records.

  • Benefits
    Member/Associate Benefits Market Making Member Full Member Affiliate Exchange Affiliate Associate
    Vote at General Meetings or Annual General Meetings or on written resolutions X X *    
    Count toward the quorum at General Meetings or Annual General Meetings X X *    
    Nominate, vote, propose or second Board Members X X *    
    Run for election to the Board (1) X X      
    Benefit from the Terminal Markets Order (2) X X X X  
    Eligible to apply to Benchmark Administrators to become a Direct or Indirect participant in the Benchmark Price Auction processes (3)
    X X X   X
    Receive significant discounts for Annual Conference and other open events X X X X X
    Access to free to attend “Member Only” events, enabling networking with other Member businesses (4)
    X X X X X
    Access to free educational webinars (5)
    X X X X X
    Access to market intelligence and expert analysis
    X X X X X
    LBMA Membership demonstrates integrity and transparency throughout precious metals supply chain; coupled with attestation to the Code X X X X X
    Receive advance notice of upcoming legislation, providing organisations with the opportunity to lobby legislation (6) X X X X X

    * For Affiliates only:  Unless the Market Making Member or Full Member to which the Affiliate Member is affiliated has nominated the Affiliate Member to exercise such rights on behalf of and in place of it. 

    (1) In accordance with the Articles of Association, there are six elected posts on the LBMA Board. There are three posts for Market Making Members and three for Full Members. Elections for Market Making and Full Member posts are held on alternate years in accordance with the Articles of Association.

    (2) The Terminal Markets Order is an agreement between LBMA and HM Revenue & Customs, providing Members with zero-rated VAT on investment gold and silver products. Specific terms are covered under the HMRC/LBMA Memorandum of Understanding.

    (3) Please note that the ultimate decision to participate in the benchmark auctions rests with the relevant benchmark administrator.

    (4) Some limitations may be placed upon Associate attendance, depending on the nature of the event.

    (6) While Associates may receive notification of such changes, they may only make representations to the LBMA Executive who will raise any issues for the Board’s consideration. 

  • Application Process

    All new applicants must complete an online application form. The application form is accessible via the My LBMA portal. As part of the online application, applicants must provide three Members as attesters to support their application. The attesters must be current Members with whom the Applicant has had a bullion-based relationship for at least one year. The attesters must each provide a letter of recommendation, confirming the nature and duration of their bullion-based relationship with the Applicant.

    The LBMA Executive Staff will review the application, carry out enhanced Due Diligence through external database searches and prepare a file for the Membership Committee to review. The Membership Committee may ask additional questions, reserve the right to interview the Applicant, and once satisfied, will provide a recommendation for the ExCom’s consideration.

    The ExCom will have the ultimate decision to accept or reject an application, and this decision will be ratified by the LBMA Board. A letter will then be sent to the Applicant informing them of the decision.

  • Operational Requirements for all Applications

    Members/Associates must have an effective governance framework that ensures accountability and oversight of their business. Members/Associates must also have a compliance and risk framework that provides for a robust control and compliance environment, which identifies and manages risks associated with their engagement in the market.

    Other business requirements are:

    Member/Associate Requirements Market Making Member Full Member Affiliate Exchange Affiliate Member Associate
    Is a corporate entity incorporated in the UK or overseas X X X X X
    Is active in areas that are closely related to the London Bullion Market (1) X X X X  
    Has activities that are relevant to the global precious metals markets (2)
            X
    Is able and committed to comply with the Global Precious Metals Code (3)
    X X X X X
    Is able and committed to comply with Trade Reporting obligations and LBMA Trade Data Guidelines (3) X X X X X
    Enjoys a financial and business standing suitable for the type of Membership that it is applying for (4)
    X X X X X
    Is able to respond quickly to requests for prices from other Market Makers, providing two-way price quotations in line with current market conditions (5) X        
    Offers price quotation services during normal London Bullion Market trading hours (6) 
    X        
    Is able to quote any combination of spot, options and forwards for both gold and silver throughout the London business day in the maximum quantities (7)
    X        

    (1) These activities include trading, broking, shipping and storage, mining, refining, inspection and assaying, and research. For companies trading 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.

    (2) Activities such as trading, refining (must have LBMA Good Delivery List status before an application will be considered), melting and assaying, fabricating, broking, mining, vaulting, inspections, auditing, consultancy or whose business activities are relevant to LBMA.

    (3) For banking, trading and broker entities only (including GDL Refiners with trading arms).

    (4) In assessing this criteria, the Membership Committee and ExCom will have regard to the suitability of its employees or representatives.

    (5) Market Making applies to spot, forward and options trading, and applicants can apply by specific product or a combination thereof. Applicants who are admitted for all three products will be deemed to be Full Market Making Members.

    (6) These are 08:00 to 17:00 GMT or, on days when the New York market is closed, until the London PM Gold Price auction.

    (7) Quantities are subject to review and amended from time to time by the LBMA Board. Please refer to the Membership Rulebook for the current Market Making quantities. 

  • Business Conduct Rules

    Members/Associates must have an effective governance framework that ensures accountability and oversight of their business. Members/Associates must also have a compliance and risk framework that provides for a robust control and compliance environment, which identifies and manages risks associated with their engagement in the market. Failure to meet the requirements of LBMA rules can potentially lead to the Membership/Associateship being suspended or revoked. The determination of any sanction is based on the sole discretion of the ExCom.

  • Enforcement Provisions

    If Members/Associates are found to be in breach of the rules within the Membership Rulebook, several actions can occur:

    -Written warning: a written warning will be issued, asking the Member/Associate to remediate the breach within given time. Failure to remedy, could lead to suspension, or termination;

    - Suspension: LBMA reserves the right to suspend Membership or Associateship status with immediate effect until further notice should LBMA require time to investigate potential issues/breaches. If on further analysis, LBMA determines that the Rules are not being adhered to, LBMA reserves the right to terminate or revoke Membership/Associateship.

    If a Member or Associate:

    - Commits a serious breach of the Rules

    - Repeatedly breaches the Rules (which can amount to a serious breach);

    - Fails to remedy a breach within six months of first being sent a warning notification; or

    - Commits a serious offence under the rules of any relevant regulatory body;

    and it is determined by the ExCom that as a result of the breach or offence, the Member’s/Associate’s continuing Membership or Associateship status could bring LBMA into disrepute, the Membership or Associateship status may be terminated/revoked.

  • Resignation Procedure

    A Member or Associate may at any time resign from LBMA by giving notice in writing to LBMA and shall thereupon cease to be a Member or cease to have Associate status. In the event of a Member or Associate resigning, the annual subscription fee shall be payable in full for the year during which such resignation or termination of Membership or Associateship occurs. If the Member or Associate has already paid its annual subscription fees, the Member or Associate shall not be entitled to recover such payment or any part thereof from LBMA.