Membership

Full Membership

Who can apply to become a Full Member of the LBMA?

Full membership of LBMA is available to companies in the UK and abroad. All Members must be operational in areas that are closely related to the London bullion market. These activities include trading, broking, shipping and storage, mining, refining, inspection and assaying and research. For companies who trade 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. Membership on the part of individuals is not permitted.

Application Requirements

Companies applying for Membership of LBMA must provide three LBMA members as attesters when submitting their application. These should be members with which the applicant has had a bullion based business relationship for at least one year. LBMA requires each attester to supply a letter of recommendation, confirming the extent of their bullion-based relationship.

Terminal Markets Order

LBMA Full Members can trade under the terms of the Terminal Markets Order (TMO). Within the UK, silver and non-investment gold remain under the scope of the TMO under an agreement reached between HM Revenue & Customs and the LBMA. This legislation is a simplification mechanism which applies a ‘zero rate’ of VAT to sales of goods ordinarily dealt with on the market. This enables sales between Members and between a Member and a non-member to be treated as zero-rated, provided the Member retains effective physical control of the metal, or they ship it outside the UK on behalf of the non-member. These trading arrangements are often referred to as the ‘Black Box’.

For more detailed information on application requirements, see our FAQs.

Full Member Reviews

Full Members are reviewed periodically in line with LBMA’s Due Diligence Policy. This process is designed to audit continued engagement with the London Bullion Market and to ensure that due diligence standards are being maintained.