THE GLOBAL PRECIOUS

METALS CODE (THE CODE)1,

LAUNCHED IN 2017 SETS
OUT THE STANDARDS AND
BEST PRACTICE EXPECTED
FROM MARKET PARTICIPANTS
IN THE GLOBAL OVER THE
COUNTER (OTC) WHOLESALE
PRECIOUS METALS MARKET.
IT IS INTENDED TO PROMOTE A ROBUST, FAIR, EFFECTIVE AND APPROPRIATELY
TRANSPARENT MARKET IN WHICH DIVERSE GROUPS OF MARKET PARTICIPANTS
ARE ABLE TO CONFIDENTLY AND EFFECTIVELY TRANSACT AT COMPETITIVE
PRICES THAT REFLECT AVAILABLE MARKET INFORMATION. THE CODE REFLECTS
ACCEPTABLE STANDARDS OF BEHAVIOUR THAT MARKET PARTICIPANTS SHOULD
ADHERE TO. LBMA WOULD ENCOURAGE ALL THOSE PARTICIPATING IN THE
GLOBAL WHOLESALE PRECIOUS METALS MARKET, INCLUDING CENTRAL BANKS,
TO ADHERE PROPORTIONATELY TO THE CODE. THE MOST RECENT VERSION OF
THE CODE, AND FURTHER INFORMATION, IS AVAILABLE ON LBMA’S WEBSITE
WWW.LBMA.ORG.UK
About the
Global Precious
Metals Code

1. Published on 25 May 2017, with some minor amendments made from time to time.

WWW.LBMA.ORG.UK
THE GLOBAL PRECIOUS
METALS CODE (THE CODE)1,
LAUNCHED IN 2017 SETS
OUT THE STANDARDS AND
BEST PRACTICE EXPECTED
FROM MARKET PARTICIPANTS
IN THE GLOBAL OVER THE
COUNTER (OTC) WHOLESALE
PRECIOUS METALS MARKET.
IT IS INTENDED TO PROMOTE A ROBUST, FAIR, EFFECTIVE AND APPROPRIATELY
TRANSPARENT MARKET IN WHICH DIVERSE GROUPS OF MARKET PARTICIPANTS
ARE ABLE TO CONFIDENTLY AND EFFECTIVELY TRANSACT AT COMPETITIVE
PRICES THAT REFLECT AVAILABLE MARKET INFORMATION. THE CODE REFLECTS
ACCEPTABLE STANDARDS OF BEHAVIOUR THAT MARKET PARTICIPANTS SHOULD
ADHERE TO. LBMA WOULD ENCOURAGE ALL THOSE PARTICIPATING IN THE
GLOBAL WHOLESALE PRECIOUS METALS MARKET, INCLUDING CENTRAL BANKS,
TO ADHERE PROPORTIONATELY TO THE CODE. THE MOST RECENT VERSION OF
THE CODE, AND FURTHER INFORMATION, IS AVAILABLE ON LBMA’S WEBSITE
WWW.LBMA.ORG.UK
About the
Global Precious
Metals Code

1. Published on 25 May 2017, with some minor amendments made from time to time.

WWW.LBMA.ORG.UK
Four Leading
Principles
THE CODE IS ORGANISED AROUND FOUR LEADING PRINCIPLES. THESE PROMOTE
AND SUPPORT FAIR, EFFECTIVE, OPEN, TRANSPARENT AND RESPONSIBLE
ENGAGEMENT WITHIN THE MARKET:
1
Ethics: Market Participants are expected to behave in an
ethical and professional manner to promote the fairness
and integrity of the global Precious Metals market.
2
Governance, Compliance and Risk Management:
Market Participants are expected to have a sound and
effective governance framework that provides clear
accountability and comprehensive oversight of Precious
Metals activity. Market Participants should also have a
compliance and risk framework which effectively identifies
and manages the risks associated with their engagement
in the market.
3
Information Sharing: Market Participants are expected to
be clear and accurate in their communications. In addition,
Market Participants are also expected to protect Confidential
Information and to promote effective communication that
supports a robust, fair, open, liquid and appropriately
transparent global Precious Metals market.
4
Business Conduct: Market Participants are expected to
effectively manage each stage of the transaction life cycle,
i.e. pre-trade, execution and post-trade, in order to promote
a robust, fair, open and appropriately transparent Precious
Metals market.
The Code will be periodically reviewed and is expected to evolve over time.
Adherence to the Code
LBMA would encourage all those who participate in, or seek to participate in, the Further
global wholesale Precious Metals market to adhere to this Code and, in doing so,
bring clear and lasting benefits for all involved.
A list of organisations that have undertaken this step appears on LBMA’s website.
CENTRAL
BANKS Information
Central Banks are also encouraged to apply the Code and those issuing public statements ARE ALSO
of commitment (as the Bank of England has) will be listed on LBMA’s website. ENCOURAGED Full details, including the latest version
of the Code, can be found on LBMA’s
TO APPLY website. The Statement of Commitment
Attesting to the Code Proportionately THE CODE can be found in Annex 5 of the Code as
well as via the LBMA website where a
Each organisation attesting to the Code will need to apply proportionality in their page is devoted to matters surrounding
implementation of this to their business activities. This does not mean different the Code and conformance to it.
standards for different institutions. Instead it recognises the differing levels of size,
complexity, nature of engagement and sophistication of Market Participants Market Participants may make use of the
in the Precious Metals market worldwide. Statement of Commitment in different
ways to support the objectives of the
Code, enhancing transparency, efficiency
Applicable Laws and Regulation and functioning in the global Precious
Metals market.
Market Participants must be aware of, and comply with the laws, rules and
regulations applicable to them and the Precious Metals market in each jurisdiction
us
Global Precio
in which they do business (Applicable Law). This Code does not impose legal or
Metals Code
regulatory obligations on Market Participants nor is it a substitute for regulation,
but rather it is intended to serve as a supplement to any Applicable Law by adopting
global good practices and processes. April 2018
Background
The Code has its roots in the Fair & Effective Markets Review (FEMR) published
in June 2014. Led by the Bank of England, and co-chaired by the FCA and HM
Treasury, FEMR was a comprehensive assessment of the Fixed Income, Currency
and Commodities markets.
The objective was to restore trust in the markets and influence cross-border
Training
discussion on trading practices. In total FEMR has led to the development of
three separate Codes for the Fixed Income, Currency and Commodities markets.
The Code published by LBMA replaced the bullion annex of the Non-Investment
products (NIPs) Code.
To assist members and Market Participants in
The standards in the Code are not particular to the Precious Metals market and adherence to the Code, LBMA has developed a training
the themes are common across all markets. Indeed, the Code is closely aligned module in partnership with ACI Financial Markets
with the FX Global Code2, also launched in 2017, produced by the Foreign Exchange Association (ACI). This provides LBMA member
Working Group as established by the Bank for International Settlements. institutions and individual practitioners access to an E
THIS CODE Learning, Attestation and Certification (ELAC) Portal. By
A new voluntary UK Money Markets Code setting out the standards and best practice DOES NOT offering access to the ELAC portal, LBMA will ensure
expected from participants in the deposit, repo and securities lending markets was IMPOSE its members participate in a standardised, high-quality
issued by the Bank of England3 in 2017. training and education programme.
LEGAL OR
OBLIGATIONS
Comparison with the FX Global Code ON MARKET
The ELAC portal combines illustrative examples and scenarios for Precious Metals market
practitioners across different roles and circumstances, building on the existing portal developed
It is the intention, as far as practically possible, for the Code to be aligned with the PARTICIPANTS to assist Market Participants including Central Banks, Regulators and Operations Personnel with
FX Global Code unless the specifics of the Precious Metals market prevent alignment adherence to the FX Global Code of Conduct (FXGC).
NOR IS IT A
due to features unique to this sector.
SUBSTITUTE The portal is available to subscribers. For more information on how to subscribe please contact
FOR Rachel Hart, Rachel.Hart@lbma.org.uk or Hayley Brooks, Hayley.Brooks@acifma.com.
Full details are also available on LBMA’s website www.lbma.org.uk.
2. Published on 25 May 2017. 3. Published on 26 April, 2017. REGULATION
Four Leading
Principles
THE CODE IS ORGANISED AROUND FOUR LEADING PRINCIPLES. THESE PROMOTE
AND SUPPORT FAIR, EFFECTIVE, OPEN, TRANSPARENT AND RESPONSIBLE
ENGAGEMENT WITHIN THE MARKET:
1
Ethics: Market Participants are expected to behave in an
ethical and professional manner to promote the fairness
and integrity of the global Precious Metals market.
2
Governance, Compliance and Risk Management:
Market Participants are expected to have a sound and
effective governance framework that provides clear
accountability and comprehensive oversight of Precious
Metals activity. Market Participants should also have a
compliance and risk framework which effectively identifies
and manages the risks associated with their engagement
in the market.
3
Information Sharing: Market Participants are expected to
be clear and accurate in their communications. In addition,
Market Participants are also expected to protect Confidential
Information and to promote effective communication that
supports a robust, fair, open, liquid and appropriately
transparent global Precious Metals market.
4
Business Conduct: Market Participants are expected to
effectively manage each stage of the transaction life cycle,
i.e. pre-trade, execution and post-trade, in order to promote
a robust, fair, open and appropriately transparent Precious
Metals market.
The Code will be periodically reviewed and is expected to evolve over time.
Adherence to the Code
LBMA would encourage all those who participate in, or seek to participate in, the Further
global wholesale Precious Metals market to adhere to this Code and, in doing so,
bring clear and lasting benefits for all involved.
A list of organisations that have undertaken this step appears on LBMA’s website.
CENTRAL
BANKS Information
Central Banks are also encouraged to apply the Code and those issuing public statements ARE ALSO
of commitment (as the Bank of England has) will be listed on LBMA’s website. ENCOURAGED Full details, including the latest version
of the Code, can be found on LBMA’s
TO APPLY website. The Statement of Commitment
Attesting to the Code Proportionately THE CODE can be found in Annex 5 of the Code as
well as via the LBMA website where a
Each organisation attesting to the Code will need to apply proportionality in their page is devoted to matters surrounding
implementation of this to their business activities. This does not mean different the Code and conformance to it.
standards for different institutions. Instead it recognises the differing levels of size,
complexity, nature of engagement and sophistication of Market Participants Market Participants may make use of the
in the Precious Metals market worldwide. Statement of Commitment in different
ways to support the objectives of the
Code, enhancing transparency, efficiency
Applicable Laws and Regulation and functioning in the global Precious
Metals market.
Market Participants must be aware of, and comply with the laws, rules and
regulations applicable to them and the Precious Metals market in each jurisdiction
us
Global Precio
in which they do business (Applicable Law). This Code does not impose legal or
Metals Code
regulatory obligations on Market Participants nor is it a substitute for regulation,
but rather it is intended to serve as a supplement to any Applicable Law by adopting
global good practices and processes. April 2018
Background
The Code has its roots in the Fair & Effective Markets Review (FEMR) published
in June 2014. Led by the Bank of England, and co-chaired by the FCA and HM
Treasury, FEMR was a comprehensive assessment of the Fixed Income, Currency
and Commodities markets.
The objective was to restore trust in the markets and influence cross-border
Training
discussion on trading practices. In total FEMR has led to the development of
three separate Codes for the Fixed Income, Currency and Commodities markets.
The Code published by LBMA replaced the bullion annex of the Non-Investment
products (NIPs) Code.
To assist members and Market Participants in
The standards in the Code are not particular to the Precious Metals market and adherence to the Code, LBMA has developed a training
the themes are common across all markets. Indeed, the Code is closely aligned module in partnership with ACI Financial Markets
with the FX Global Code2, also launched in 2017, produced by the Foreign Exchange Association (ACI). This provides LBMA member
Working Group as established by the Bank for International Settlements. institutions and individual practitioners access to an E
THIS CODE Learning, Attestation and Certification (ELAC) Portal. By
A new voluntary UK Money Markets Code setting out the standards and best practice DOES NOT offering access to the ELAC portal, LBMA will ensure
expected from participants in the deposit, repo and securities lending markets was IMPOSE its members participate in a standardised, high-quality
issued by the Bank of England3 in 2017. training and education programme.
LEGAL OR
OBLIGATIONS
Comparison with the FX Global Code ON MARKET
The ELAC portal combines illustrative examples and scenarios for Precious Metals market
practitioners across different roles and circumstances, building on the existing portal developed
It is the intention, as far as practically possible, for the Code to be aligned with the PARTICIPANTS to assist Market Participants including Central Banks, Regulators and Operations Personnel with
FX Global Code unless the specifics of the Precious Metals market prevent alignment adherence to the FX Global Code of Conduct (FXGC).
NOR IS IT A
due to features unique to this sector.
SUBSTITUTE The portal is available to subscribers. For more information on how to subscribe please contact
FOR Rachel Hart, Rachel.Hart@lbma.org.uk or Hayley Brooks, Hayley.Brooks@acifma.com.
Full details are also available on LBMA’s website www.lbma.org.uk.
2. Published on 25 May 2017. 3. Published on 26 April, 2017. REGULATION
Four Leading
Principles
THE CODE IS ORGANISED AROUND FOUR LEADING PRINCIPLES. THESE PROMOTE
AND SUPPORT FAIR, EFFECTIVE, OPEN, TRANSPARENT AND RESPONSIBLE
ENGAGEMENT WITHIN THE MARKET:
1
Ethics: Market Participants are expected to behave in an
ethical and professional manner to promote the fairness
and integrity of the global Precious Metals market.
2
Governance, Compliance and Risk Management:
Market Participants are expected to have a sound and
effective governance framework that provides clear
accountability and comprehensive oversight of Precious
Metals activity. Market Participants should also have a
compliance and risk framework which effectively identifies
and manages the risks associated with their engagement
in the market.
3
Information Sharing: Market Participants are expected to
be clear and accurate in their communications. In addition,
Market Participants are also expected to protect Confidential
Information and to promote effective communication that
supports a robust, fair, open, liquid and appropriately
transparent global Precious Metals market.
4
Business Conduct: Market Participants are expected to
effectively manage each stage of the transaction life cycle,
i.e. pre-trade, execution and post-trade, in order to promote
a robust, fair, open and appropriately transparent Precious
Metals market.
The Code will be periodically reviewed and is expected to evolve over time.
Adherence to the Code
LBMA would encourage all those who participate in, or seek to participate in, the Further
global wholesale Precious Metals market to adhere to this Code and, in doing so,
bring clear and lasting benefits for all involved.
A list of organisations that have undertaken this step appears on LBMA’s website.
CENTRAL
BANKS Information
Central Banks are also encouraged to apply the Code and those issuing public statements ARE ALSO
of commitment (as the Bank of England has) will be listed on LBMA’s website. ENCOURAGED Full details, including the latest version
of the Code, can be found on LBMA’s
TO APPLY website. The Statement of Commitment
Attesting to the Code Proportionately THE CODE can be found in Annex 5 of the Code as
well as via the LBMA website where a
Each organisation attesting to the Code will need to apply proportionality in their page is devoted to matters surrounding
implementation of this to their business activities. This does not mean different the Code and conformance to it.
standards for different institutions. Instead it recognises the differing levels of size,
complexity, nature of engagement and sophistication of Market Participants Market Participants may make use of the
in the Precious Metals market worldwide. Statement of Commitment in different
ways to support the objectives of the
Code, enhancing transparency, efficiency
Applicable Laws and Regulation and functioning in the global Precious
Metals market.
Market Participants must be aware of, and comply with the laws, rules and
regulations applicable to them and the Precious Metals market in each jurisdiction
us
Global Precio
in which they do business (Applicable Law). This Code does not impose legal or
Metals Code
regulatory obligations on Market Participants nor is it a substitute for regulation,
but rather it is intended to serve as a supplement to any Applicable Law by adopting
global good practices and processes. April 2018
Background
The Code has its roots in the Fair & Effective Markets Review (FEMR) published
in June 2014. Led by the Bank of England, and co-chaired by the FCA and HM
Treasury, FEMR was a comprehensive assessment of the Fixed Income, Currency
and Commodities markets.
The objective was to restore trust in the markets and influence cross-border
Training
discussion on trading practices. In total FEMR has led to the development of
three separate Codes for the Fixed Income, Currency and Commodities markets.
The Code published by LBMA replaced the bullion annex of the Non-Investment
products (NIPs) Code.
To assist members and Market Participants in
The standards in the Code are not particular to the Precious Metals market and adherence to the Code, LBMA has developed a training
the themes are common across all markets. Indeed, the Code is closely aligned module in partnership with ACI Financial Markets
with the FX Global Code2, also launched in 2017, produced by the Foreign Exchange Association (ACI). This provides LBMA member
Working Group as established by the Bank for International Settlements. institutions and individual practitioners access to an E
THIS CODE Learning, Attestation and Certification (ELAC) Portal. By
A new voluntary UK Money Markets Code setting out the standards and best practice DOES NOT offering access to the ELAC portal, LBMA will ensure
expected from participants in the deposit, repo and securities lending markets was IMPOSE its members participate in a standardised, high-quality
issued by the Bank of England3 in 2017. training and education programme.
LEGAL OR
OBLIGATIONS
Comparison with the FX Global Code ON MARKET
The ELAC portal combines illustrative examples and scenarios for Precious Metals market
practitioners across different roles and circumstances, building on the existing portal developed
It is the intention, as far as practically possible, for the Code to be aligned with the PARTICIPANTS to assist Market Participants including Central Banks, Regulators and Operations Personnel with
FX Global Code unless the specifics of the Precious Metals market prevent alignment adherence to the FX Global Code of Conduct (FXGC).
NOR IS IT A
due to features unique to this sector.
SUBSTITUTE The portal is available to subscribers. For more information on how to subscribe please contact
FOR Rachel Hart, Rachel.Hart@lbma.org.uk or Hayley Brooks, Hayley.Brooks@acifma.com.
Full details are also available on LBMA’s website www.lbma.org.uk.
2. Published on 25 May 2017. 3. Published on 26 April, 2017. REGULATION
THE GLOBAL PRECIOUS
METALS CODE (THE CODE)1,
LAUNCHED IN 2017 SETS
OUT THE STANDARDS AND
BEST PRACTICE EXPECTED
FROM MARKET PARTICIPANTS
IN THE GLOBAL OVER THE
COUNTER (OTC) WHOLESALE
PRECIOUS METALS MARKET.
IT IS INTENDED TO PROMOTE A ROBUST, FAIR, EFFECTIVE AND APPROPRIATELY
TRANSPARENT MARKET IN WHICH DIVERSE GROUPS OF MARKET PARTICIPANTS
ARE ABLE TO CONFIDENTLY AND EFFECTIVELY TRANSACT AT COMPETITIVE
PRICES THAT REFLECT AVAILABLE MARKET INFORMATION. THE CODE REFLECTS
ACCEPTABLE STANDARDS OF BEHAVIOUR THAT MARKET PARTICIPANTS SHOULD
ADHERE TO. LBMA WOULD ENCOURAGE ALL THOSE PARTICIPATING IN THE
GLOBAL WHOLESALE PRECIOUS METALS MARKET, INCLUDING CENTRAL BANKS,
TO ADHERE PROPORTIONATELY TO THE CODE. THE MOST RECENT VERSION OF
THE CODE, AND FURTHER INFORMATION, IS AVAILABLE ON LBMA’S WEBSITE
WWW.LBMA.ORG.UK
About the
Global Precious
Metals Code

1. Published on 25 May 2017, with some minor amendments made from time to time.

WWW.LBMA.ORG.UK