The Global Precious Metals Code (the Code), published in May 2017, sets out the standards and best practice expected from market participants in the global over-the-counter (OTC) wholesale precious metals market.
As well as market conventions, the Code covers the principles that should be adopted by market participants including ethics, compliance, governance and risk management, as well as pre-trade, execution and post-trade business conduct.
Adherence to the Code
All LBMA members are required to sign a statement of commitment attesting to adhere to the principles outlined in the Code. Beyond the boundaries of our membership, all organisations actively involved in the global Over The Counter (OTC) wholesale trading market for precious metals are expected to act according to the broad principles of this Code and ensure that they have procedures designed to uphold its general tenets.
All LBMA members are required to sign a statement of commitment attesting to adhere to the principles outlined in the Code
Other Market Codes
These standards are not unique to the precious metals markets and the themes are common across all markets.
The Code is closely aligned with both the FX Global Code, produced by the Bank for International Settlements, and the code for the UK Securities Lending, Repo and Money Markets, produced by the Bank of England.
Why the Refresh?
As markets develop and evolve, there is the need to keep the guidance fresh and up to date to ensure that all market participants have a document that is relevant and robust.
Working Group to Review the Code
LBMA has set up a working group consisting of a cross-section of its membership to review the Code as well as, ultimately, seek input and feedback from the wider membership.
We intend to produce a revised version of the Code to be published in Q4 2022. It’s not too late to contribute to this important review process and if you or your organisation would like to participate, please email us: firstname.lastname@example.org
LBMA has set up a working group consisting of a cross-section of its membership to review the Code
UK REACH Update
LBMA has recently received an update from the UK Health and Safety Executive (“HSE”) in respect of our request for the HSE to turn on the grandfathering function in their systems to allow those impacted by UK REACH to comply with their obligations. The HSE have advised that they have not set a firm deadline for the re-activation. The timing will depend on the other development work being carried out to improve the system, known as Comply, within the UK REACH service.
Therefore, if any of our members were unable to submit the initial information required by the original grandfathering deadline, members can contact HSE directly for the information that they originally requested. HSE have advised they will keep a record of all such requests they receive and will consider when to re-activate the grandfathering function within their Comply system. HSE have advised they will contact those companies directly who have notified them that they require this facility prior to the re-activation to inform them of when it will be available to them.
If any members would prefer that the LBMA represent their interests and liaise with HSE on their behalf we would be happy to do so, in which case please complete this short survey on the LBMA website.
LBMA is planning to host a webinar on this in the near future, so please look out for further details in our weekly members newsletter.