March 02, 2022

FMSB Publishes Standard for Participants’ Conduct in LBMA Auctions

The Fixed Income, Currencies and Commodities Markets Standards Board (FMSB) has released a "Standard" which establishes principles intended to facilitate auction participants’ management of both Client orders and Houses orders.

The FMSB said that the Standard “seeks to increase the liquidity available in LBMA Auctions and thereby reduce any potential divergence between the concluding LBMA Precious Metal Price for the precious metal in question and the corresponding Prevailing Market Price.”

This Standard for the Conduct of Participants in LBMA Precious Metal Auctions comprises five core principles which cover auction participation, increased liquidity provision, and conflicts management.

The FMSB Standard is applicable to gold and silver benchmark auctions, run by ICE Benchmark Administration, and platinum and palladium auctions, run by the London Metal Exchange (LME).

“We welcome the publication of the FMSB Standard, and we were pleased to participate in the constructive and practical industry discussions,” said Ruth Crowell, LBMA CEO.

Full details on these standards can be found on the FMSB website, and we recommend that all participants familiarise themselves with its content.

You can find out more about LBMA precious metals prices on LBMA's website.