LBMA Publishes Code of Conduct to Restore Trust in Precious Metals Markets

The London Bullion Market Association (LBMA) today revealed a global precious metals code, which was developed in line with other two codes of conduct across the fixed income, Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and commodities industries.

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The Fair and Effective Markets Review (FEMR), which was designed by the UK government to reinforce confidence in the three wholesale markets after banks were fined billions for rigging benchmarks, released a set of guidelines for good practice in the $5 trillion a year London gold market.

The new code applies to all precious metals market participants, and will replace the Bullion Market annex currently within the Non-Investment Products (NIPs) Code. In addition to market conventions, the code will cover principles that should be adopted by members including ethics, compliance, governance and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term, as well as pre-trade, execution and post trade business conduct.

The LBMA noted that the code does not impose legal or regulatory obligations on market participants, nor is it a substitute for regulation. Instead, it is intended to serve as a supplement to current regulations by identifying global good practices and processes.

Dr Paul Fisher, Chairman of the LBMA, commented: “The Code is an important step forward to build greater trust, consistency and transparency throughout the market. I would strongly encourage all participants in the global precious metals markets to follow the principles it sets out.”

Ruth Crowell, Chief Executive of the LBMA, added: “I would like to thank all Members, market participants and LBMA staff who contributed to the preparation of the Code. And in particular our newest Executive Director, Sakhila Mirza.”