Historically, we’ve not been particularly good at articulating the benefits of membership of lbma. There still persists in some quarters the perception that we’re an exclusive club. For example, some people still think that membership is restricted to uk-domiciled companies even though that rule changed several years ago.
At the start of 2019, the board set a number of new targets for LBMA as part of its new three-year strategic vision. For the membership committee, this requires us to extend our outreach to engage more closely with sectors of the market where LBMA is under represented, for example, the mining, investment and central bank communities, as well as reaching out to the key Asian markets through the establishment of LBMA Asia. Our message is that LBMA is the voice piece, the standard setter and the quasi regulator for the global otc precious metals market.
From here to integrity
As well as the integrity of LBMA, we also need to ensure the integrity of our members. All members are required to attest to the global precious metals code (the code), which sets out a common set of principles to promote the integrity and effective functioning of the global otc market. We have also strengthened the criteria for membership. A 12-month track record in the bullion market as evidenced by three attesters remains a requirement of all applications. However, the quality control element is now driven by enhanced due diligence processes. We are also undertaking an overhaul of our membership structure and classifications this year in order to deliver a more transparent and streamlined structure to include new categories of membership. We will keep you posted on the outcome.
Setting the standards
It’s not just about reaching out to new potential members, we also need to do a better job of reminding existing members about all the hard work and initiatives that we are undertaking on their behalf. One of the key strengths of LBMA is establishing best practice and setting standards through its responsible sourcing programmes, the good delivery list and the code. These standards deliver integrity and credibility to the industry, which all LBMA members benefit from.
Shaping the future
LBMA also represents and acts in the interests of the whole market. This was demonstrated when LBMA stepped up to the plate in the market’s darkest hour, when the fixing companies stood down as administrators of the price auctions. In addition, the gold bar integrity initiative is designed to deliver new technologies to bolster further the integrity of the physical market. Members of LBMA can actively participate in such initiatives and help shape the future of the market.
New members’ portal LBMA
Also provides legal advice on a raft of regulatory changes which have impacted and continue to impact on all aspects of the market. For example, we are leading the way in lobbying the European regulatory authorities to abandon the 85% haircut in respect of nsfr and we are using the new trade reporting data to support our case. Our new members’ portal, mylbma, which we have just launched, is designed to enhance the member experience and provides the gateway to regulatory updates as well as a wealth of other unique member content including webinars, member briefings and publications.
Networking and social events
Members can also take advantage of discounted rates to attend our annual precious metals conference and our biennial a&r event, as well as complimentary events including webinars and our annual party and dinner (note that this is no longer a biennial event!). This year to celebrate the centenary of the gold price we are running a series of complimentary events. We hope to see many of you in attendance.
Our mission is to ensure the highest levels of integrity, transparency and leadership for the global otc market. If you are not already a member, come and talk to us. We’d love to tell you more about LBMA and how we can benefit you.