The new code will apply to all precious metals market participants, and will provide participants with guidance on best practice. The Precious Metals Code will replace the Bullion Market annex currently within the Non-Investment Products (NIPs) code.
When the final global Foreign Exchange Code is published in May 2017, it will replace the FX element of the NIPS code, which focuses on best practice in the global wholesale foreign exchange markets.
This new FX Code is being jointly produced by central banks and market participants. For non-foreign exchange market products in the UK market, a project to update and revise the current Code is being led by a joint Sub-Committee of the Bank of England's Money Market Liaison Committee and the Securities Lending and Repo Committee. The relevant sections of the Bank of England's website are here and here. It is expected that all three new Codes will be published in mid-2017.
The renamed Precious Metals Code will set out best practice in the market, with a high level of detail and therefore be more comprehensive than the previous version. In addition to market conventions the code will cover principles that should be adopted by members including compliance, governance, risk management and pre and post trade execution. Illustrative examples of acceptable practices will be included.
Ruth Crowell Chief Executive of the LBMA commented
“The NIPs code is currently mandatory for LBMA members and it is important that we enhance and maintain the new Code's application across the international precious metal markets.”
For further information please contact:
Tel: +44 (0)20 7796 3067