Regulation

Financial Regulation

The following reference materials will help participants adhere to the financial regulations that govern the Loco London Precious Metals Market.

Terminal Markets Order

The original Value Added Tax (Terminal Markets) Order (TMO) was published in 1973 to classify certain commodities exchanges as “terminal markets”. The TMO means certain transactions between members of these terminal markets can be zero-rated for VAT purposes.

Regulatory Resources

LBMA Resources

MiFID II / MiFIR

MiFID II introduces a wide range of reforms to the original version of MiFID, and will apply from 3 January 2018. The reforms seek to enhance transparency, surveillance and accountability across the financial services industry in the EU.

Regulatory Resources

LBMA Resources

SFTR

The SFTR aims to reduce systemic risk in the Securities Financing Transaction (SFT) market by increasing transparency and regulatory surveillance. The SFTR requires financial and non-financial counterparties to report both sides of any trades considered as SFTs.

Regulatory Resources

These Guidelines provides additional information on the reporting obligations under SFTR and, in particular, under Articles 4 and 12.

LBMA Resources

Net Stable Funding Ratio

The Net Stable Funding Ratio (NSFR) framework will require 85% of Required Stable Funding to be applied for the financing and the clearing and settlement of precious metals transactions.

Regulatory Resources

LBMA Resources

Benchmarks

The LBMA Gold Price and LBMA Silver Price are the global benchmark prices for unallocated gold and silver delivered in London. Both the Gold and Silver Prices are regulated Commodities Benchmarks under the EU Benchmarks Regulation. The Prices are administered by ICE Benchmark Administration.

Regulatory Resources

LBMA Resources

Other Resources