LBMA Annual Report 2023

CEO’s Report

As we approach the end of the second year of our Three-Year Strategy, I am delighted to report that our second year has been an intense, but successful one, laying the groundwork for an exciting finale in 2024.

Three major initiatives have gained real momentum in 2023, reaching significant milestones: Gold Bar Integrity, Sustainability and Gold as HQLA. Regarding the Gold Bar Integrity digital ecosystem, we launched a Request for Proposal and are on track for a decision in principle by year end. This tender is the first real step in digitising the Responsible Gold Guidance, a pivotal move that promises substantial returns in both value and integrity for the global industry.

We launched our ambitious three-year Sustainability and Responsible Sourcing Strategy. Core to this strategy is our commitment to performing the highest possible oversight of Responsible Sourcing audits, as well as owning our own sustainability. We also call on all actors in the value chain to work together, to turn the promises made at the Declaration of Responsibility and Sustainability Principles signed in Lisbon into reality.

Without all actors from rock to ring getting involved, we cannot succeed. We have faced a lot of challenges in this space this year and we will continue to do so. I look forward to getting down to work with all of you on these challenges at the Sustainability Summit in March.

Turning to Financial Market Enhancements, our ongoing quest to see gold classified as a High-Quality Liquid Asset (HQLA) has been enhanced thanks to our London Market Review. During this review, we have gathered a coalition of willing market participants to create an action plan to address any transparency gaps. 2023 marked five years of LBMA Trade Data reporting and thisimportant dataset is instrumental in illustrating the liquidity of gold, and our work has highlighted the benefits this classification would bring for financial market participants and also for the real economy.

Road to a More Accessible LBMA - 85% Member Satisfaction Achieved

Member Satisfaction is now a key measure of our ongoing success. The independent survey conducted in 2021 showed a 67% Member Satisfaction rate, with 87% of Members participating.

Following that feedback, we developed an Engagement and Member Services strategy to improve the work we do for you. I’m pleased to say we have again exceeded our target of 75% satisfaction and have achieved an overall satisfaction rate of 85%, with 63% of Members participating.

Our Member Town Halls, Open Houses and Member Outreach have been well received as well as our recently launched Relationship Management strategy. Positive feedback from the Member Survey included the addition of working groups to address any issues, for example the Retailers/Dealers Working Group, the ASM Task Force and the Refiners' Compliance Working Group.

Improvements in communications, webinars, and events were highlighted, and the information and material produced by LBMA was noted as very helpful. Areas of improvement concerned
a request for more training opportunities, regulatory updates, networking, Member collaborations and even more specialised working groups.

I encourage Members and all stakeholders to engage with me, our Leadership Team as well as our Board if you have any questions or comments on how we can work better for you, the industry.

A Decade of Growth, Transparency & Integrity

In the Future of Gold session at our Conference in Barcelona, Adrian Ash (Bullion Vault) quoted Winston Churchill: “The farther backward you can look, the farther forward you can see.”

With this quote in mind, and as I approach my ten-year tenure with LBMA, I’d like to briefly look back over the growth and change I’ve overseen during my time.

The transparency and integrity of the London Market has changed immensely. Publication of LBMA Trade Data brought transparency to the Market for the first time in 300 years, showing $15 trillion in annual turnover. London Vault holdings were also published for the first time, giving clients more confidence and understanding in the Market in which they trade. The launch of the Global Precious Metals Code gives further confidence to clients that they will be treated fairly when it comes to business conduct.

I'm delighted to see not only Members attesting, but global market participants, including the Bank of England, Reserve Bank of South Africa and Reserve Bank of Australia. Daily LBMA Price auctions are transparent and open to all market participants, with best-in-class independent oversight and administration. We now have more banks than non-banks participating, having grown significantly from five banks participating in gold in 2013 to 17 participants now in 2023.

LBMA has seen its balance sheet double in ten years, thanks to licensing of data, events, services and of course growth in Membership.

LBMA Membership has grown from 137 Members to 160 Members. 2023 saw a significant growth in numbers which will continue into 2024 as we have changed our criteria and approach to be
more inclusive, while maintaining high standards. The number of Good Delivery List Refiners has not changed significantly but the work done to test and maintain their listing has increased,
along with the services we offer them. In particular, responsible sourcing has significantly increased our work and public exposure.

The Responsible Sourcing Audit Programme has raised the profile of the work done by LBMA and the gold industry as a whole. LBMA has positioned itself to be able to respond in a timely
manner, and deliver the leadership, oversight, guidance and support required by not only our Members and Refiners, but for actors across the whole precious metals value chain. In 2023, this
role was particularly important as the industry was faced with global gold sanctions. LBMA was able to support the industry by providing information, guidance and support as well as dynamic engagement as well as government agencies and gold markets around the world.

Perhaps the clearest illustration of our growth in size, reach, workstreams, and industry participation can be seen with our events. We now hold a full schedule of events around the world, culminating in our flagship annual Conference. In Barcelona this year, we sold out for the first time with a record 840 delegates, making this the most-attended Conference ever.

I, for one, look forward to where 2024 and beyond will take us as an organisation and I welcome your continued support – as ever – in all of our work.

Ruth Crowell
LBMA CEO

Global Precious Metals Code

Current Members

Responsible Sourcing Newsletter

A Guide to the Loco London Precious Metals Market

Precious Metals Forecast Survey 2024

CEO’s Report

Road to a More Accessible LBMA - 85% Member Satisfaction Achieved

A Decade of Growth, Transparency & Integrity

Chairman’s Message

Sustainability and Responsible Sourcing