Regulation
Financial Regulation
The following reference materials will help participants adhere to the financial regulations that govern the Loco London Precious Metals Market.
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
- EU Capital Requirements Regulation II (2017/2401)
- European Banking Authority Report, December 2013
- EU Capital Requirements Regulation (575/2013)
LBMA Resources
- Update: NSFR, May 2021
- Update: NSFR, May 2020
- Article: Regulation Update, May 2020
- Article: Regulation Update, October 2019
- Update: EBA advises Commission on Basel III final text, August 2019
- Article: Regulation Update, July 2019
- Article: Regulation Update, July 2018
- Update: NSFR, February 2018
- Update: NSFR, December 2017
- Presentation: Regulation Update, October 2017
- Update: NSFR, March 2017
- Update: NSFR, February 2017
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
- EU VAT Directive (2006/112/EC)
- Terminal Markets Order 1973
LBMA Resources
- Update: TMO & Infraction Proceedings, May 2020
- Memorandum of Understanding (MoU) between LBMA, LPPM and HMRC, April 2013
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
- MiFID II (2014/65/EU)
LBMA Resources
- Update: MiFID II, December 2017
- Presentation: Regulation Update, October 2017
- Update: MiFID II, December 2017
- Update: MiFID II, October 2017
- Update: MiFID II, March 2017
- Letter to ESMA, January 2015
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
- ESMA Guidelines, January 2020
- SFTR Regulation (2015/2365)
These Guidelines provides additional information on the reporting obligations under SFTR and, in particular, under Articles 4 and 12.
LBMA Resources
- Update: SFTR, July 2020
- Representation Letter Template, July 2020
- Market Guidance, June 2020
- Article: Regulation Update, May 2020
- Update: SFTR, December 2017
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
- EU Benchmarks Regulation (2016/1011)
LBMA Resources
- Article: Regulation Update, August 2020
- Update: Benchmarks Regulation, December 2017
- Presentation: Regulation Update, October 2017
- Article: Regulation Update, May 2015
Other Resources
- ICE Benchmark Administration: LBMA Gold and Silver Price
- ICE Benchmark Administration: Statement of Compliance with the EU
- Benchmarks Regulation
- ICE Benchmark Administration: Precious Metals Benchmark Statement