Global Precious Metals Code |
About the Global Precious Metals Code
The LBMA would welcome feedback and comments on the new draft global Precious Metals Code which will be implemented in May 2017. As part of this consultation process we invite you to complete the short survey below. As means of background the new Code will apply to all precious metals market participants who are active in the OTC wholesale precious metals trading market. The global Precious Metals Code will replace the Bullion Market annex currently within the Non-Investment Products (NIPs) Code.
When the final global Foreign Exchange Code is implemented in May 2017, it will replace the FX element of the NIPS Code, which focuses on best practice in the global wholesale foreign exchange markets. This new FX Code is being jointly produced by central banks and market participants. For non- foreign exchange market products in the UK market, a project to update and revise the current Code is being led by a joint Sub-Committee of the Bank of England's Money Market Liaison Committee and the Securities Lending and Repo Committee. It is expected that all three new Codes will be implemented in mid-2017.
The new Code will apply to all precious metals market participants, and will provide guidance on best practice. In addition to market conventions the Code will cover principles that should be adopted by members including compliance, governance, risk management and pre and post trade execution. Illustrative examples of acceptable practices will be included. Also, the Code makes a distinction between Clients and Customers to help with the application of the Code – the latter being a subset of the former and where a greater duty of care and protection is envisaged. As a generalisation, it is anticipated that while large institutions will solely have “Customers”, those with a considerably smaller footprint will simply have “Clients” and therefore aspects of the Code will not apply.
When the final global Foreign Exchange Code is implemented in May 2017, it will replace the FX element of the NIPS Code, which focuses on best practice in the global wholesale foreign exchange markets. This new FX Code is being jointly produced by central banks and market participants. For non- foreign exchange market products in the UK market, a project to update and revise the current Code is being led by a joint Sub-Committee of the Bank of England's Money Market Liaison Committee and the Securities Lending and Repo Committee. It is expected that all three new Codes will be implemented in mid-2017.
The new Code will apply to all precious metals market participants, and will provide guidance on best practice. In addition to market conventions the Code will cover principles that should be adopted by members including compliance, governance, risk management and pre and post trade execution. Illustrative examples of acceptable practices will be included. Also, the Code makes a distinction between Clients and Customers to help with the application of the Code – the latter being a subset of the former and where a greater duty of care and protection is envisaged. As a generalisation, it is anticipated that while large institutions will solely have “Customers”, those with a considerably smaller footprint will simply have “Clients” and therefore aspects of the Code will not apply.