LBMA Considers Handling All Precious Metals on Regulatory Change

  • New association may cover gold, silver, platinum, palladium
  • LBMA members to vote on new structure at AGM in June 2016

The London Bullion Market Association is considering expanding its oversight to include platinum and palladium so that the market can better deal with regulatory changes.

Having all four precious metals, rather than just gold and silver, under one association makes sense from a banking and vaulting perspective, LBMA Chief Executive Ruth Crowell said at the trade group’s annual conference in Vienna on Monday. LBMA members will be asked to vote on the change at the annual general meeting in June, she said.

Regulators around the world have scrutinized commodities trading and lawmakers have pressed for tighter bank controls. The LBMA this month invited proposals on how to improve London’s bullion market, while the World Gold Council and a group of five banks have also separately talked about making changes to over-the-counter trading.

"The ongoing changes in the regulatory, political and competitive landscape has forced us to expand our scope to maintain recognition as the world’s competent authority on bullion,” Crowell said. “While the current structure of the LBMA will continue to evolve, the fundamental role of the LBMA will remain the same.”

LBMA Talks

Crowell said the LBMA is consulting with the London Platinum & Palladium Market trade association and has agreed with the London Precious Metals Clearing Ltd. to “formalize” a relationship.

More than 600 people from banks, mining companies, retailers and exchanges are meeting for the two-day gathering in Vienna. Crowell said conference delegates will be asked whether they think the LBMA should become the World Bullion Market Association.

“The agreed vision is to add new services that the LBMA will provide and a corporate structure to support that,” Crowell said. “This will ultimately mean a new trade association for all four metals will be formed, along with financial services to support the market.”