Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

London Bullion Market Association Launches Code of Conduct

  by    0   0

The London Bullion Market Association (LBMA) has launched a code of conduct to boost confidence in the $5 trillion London gold market.

The code sets out standards and best practices expected from participants in the global over the counter (OTC) wholesale market for precious metals. It focuses on four primary areas: ethics, governance, compliance and risk management, and information sharing and business conduct. The LMBA formulated the code with input from members, along with participants from from the wider precious metals market.

It is intended to promote a robust, fair, effective and appropriately transparent market in which diverse groups of market participants, supported by resilient infrastructure, are able to confidently and effectively transact at competitive prices that reflect available market information and in a manner that conforms to acceptable standards of behavior.”

LBMA Chairman Paul Fisher called the Global Precious Metals Code an important step in market development.

Such codes are important contributors to developing and establishing the trust on which markets depend. This trust is critical to the maintenance of an effective, fair and transparent market where high standards of behavior are the norm.”

LMBA members will have 12 months to demonstrate compliance with the code. Failure to do so could result in suspension or withdrawal of membership.

The LMBA operates as a wholesale over-the-counter market for the trading of gold and silver. It ranks as the largest global center for OTC gold and silver transactions in the world. The LMBA clears around 18 million ounces in gold transfers every day. The association has more than 140 members, including banks, refiners, traders, and manufacturers.

According to a Reuters report, the LBMA code is one of three developed as a result of the Fair and Effective Markets Review (FEMR) of the fixed income, forex, and commodities markets. The UK government commissioned the review three years ago after British banks were fined billions of pounds for trying to rig benchmark interest rate Libor ( London Interbank Offered Rate is the average of interest rates estimated by each of the leading banks in London that it would be charged were it to borrow from other banks), and manipulate foreign exchange reference rates.

The FEMR found that informal codes of practice across these markets had often been misunderstood or disregarded, especially in bilateral over-the-counter (OTC) markets like gold. A lack of internal controls and personal accountability had meanwhile contributed to what it called ‘ethical drift.’ The review recommended that firms working within these markets should take greater collective responsibility for ‘developing and adhering to clear, widely understood and practical standards of practice.'”

With its size, the LBMA’s development of a formal code of conduct will likely influence the broader gold market. It should serve to boost and support confidence in gold and silver trading, not only in London, but around the world.

scam-2-sm

Get Peter Schiff’s latest gold market analysis click here for a free subscription to his exclusive monthly Gold Videocast.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Some Key Reasons Gold Should Shine in 2018

gold coins and bullions laying on a newspaperThe last few weeks have been tough on gold. If you have a short-term mentality, you might even think the gold market has gone bearish. But as World Gold Council chief market strategist John Reade pointed out in a piece he wrote for the December issue of WGC Gold Investor, 2017 has been good for […]

READ MORE →

FOMC Meeting: Yellen Follows Her Script

The December Federal Open Market Committee meeting went pretty much according to scrip. Analysts widely expected the Fed to raise rates by .25. It did. Analysts also expected the Fed to signal three more hikes in 2018. It did that too. Gold went up, as we said it probably would, hitting a one-week high in […]

READ MORE →

The US Government Is Spending Money Like a Drunken Sailor

The US federal government is spending money like a drunken sailor. And that’s probably unfair to drunken sailors. In November alone, the US government reported a $139 billion deficit. Related

READ MORE →

Crypto vs. Gold: Gold Has Value Unto Itself

gold barsBitcoin mania is in full force. When I get to my desk in the morning, the first thing I do is check the latest gold news. But lately, when I google the word “gold,” I mostly get Bitcoin news. In his most recent podcast, Peter Schiff even suggested CNBC should rename its network the “Crypto News […]

READ MORE →

The Fed’s Magic Trick That’s Picking Your Pocket

Every year, the Federal Reserve robs you of a little bit of your wealth. And it does so by design. Writing for the Sovereign Man, Jeff Thomas called it a “magic trick.” But it’s not magic in a mystical way. It’s magic in the show business sense of the word.  It’s an illusion, facilitated by distraction that fools the audience. […]

READ MORE →

Comments are closed.

Free Newsletter & Notification of Special Deals
RSS Feed
LINKEDIN
YouTube Channel
YouTube Channel
Google+
Google+
https://schiffgold.com/key-gold-news/london-bullion-market-association-launches-code-conduct
Call Now