UNITED KINGDOM May 27 2016 8:09 AM
LONDON (Scrap Register): The London Bullion Association (LBMA) launched a new code that will apply to all precious metals market participants on Thursday.
In a press release issued Thursday, the London-based association said, "It will provide participants with guidance on best practice." The 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 published 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," the LBMA said.
This new FX Code is being jointly produced by central banks and market participants.
"The renamed Precious Metals Code will set out best practice in the market, with a high level of detail and therefore be more comprehensive than the previous version. 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," the LBMA added.
Ruth Crowell chief executive of the LBMA said, "The NIPs code is currently mandatory for LBMA members and it is important that we enhance and maintain the new code's application across the international precious metal markets."
The LBMA is the international trade association that represents the wholesale over-the-counter market for gold and silver bullion.