The LBMA
The LBMA, or London Bullion Market Association, plays a critical role in the global trade of precious metals. It acts as a standards-setting organization and industry advocate for the gold and silver markets.
Founded in 1987, the LBMA consists of traders and refiners involved in the wholesale over-the-counter market for gold and silver in London. This influential bullion market sets the international price for gold and silver, which are widely recognized global benchmark prices. LBMA members trade large volumes of physical bullion as well as derivatives like futures contracts.
LBMA Standards and Quality Control
A primary function of the LBMA is maintaining standards for the quality of gold and silver traded by its members. The LBMA's good delivery standards determine the minimum acceptable refining standards and specifications for gold and silver bars. Only bars meeting LBMA good delivery criteria can be traded through members on the London bullion market. This provides assurance that all bullion meets high quality standards.
The LBMA, or London Bullion Market Association, plays a critical role in the global trade of precious metals.
Conduct and Regulatory Policies
The LBMA also develops policies, regulations and best practices for ethical conduct in the trading of precious metals. Members must follow its code of conduct for transparency and integrity in transactions. The LBMA aims to ensure a fair, efficient market for all participants. It liaises closely with regulators as an authoritative voice on market activity and trends.
In addition, the LBMA plays an educational role for the industry. It provides market data, news and commentary to increase public understanding of precious metals trading. The LBMA also holds seminars and training for refiners, regulators, bankers and miners involved in the bullion market. Promoting greater expertise ultimately strengthens the market.
The globally integrated members of the LBMA include large banks, refiners, producers and other companies spanned across dozens of countries. Some key participants are JPMorgan Chase, HSBC, Goldman Sachs, Morgan Stanley, and UBS on the banking side. Leading refiners within its membership are Metalor, Argor-Heraeus, Valcambi, and PAMP.
This extensive network gives the LBMA significant visibility into worldwide supply and demand for precious metals. It uses this data to publish statistics on trading volumes that provide insight into market directions. The LBMA also frequently commissions research on pertinent topics in the bullion industry.
In London’s history as a trading hub, the LBMA has firmly established it as the centre of the international wholesale market for gold and silver. The LBMA's quality controls, trading transparency and educational initiatives will continue promoting growth, integrity and stability in this crucial precious metals marketplace.
