A Guide to the London Precious Metals Markets

A Guide to the London Precious Metals Markets

The London Platinum & Palladium Market

Contents
Preface Introduction The London Bullion Market Association The Members Market History The London Platinum and Palladium Market The Members Market History An Over the Counter Market Market Fundamentals What sets London Apart? Market Basics Market Conventions Market Regulation Dealing and Products Users of the London Precious Metals Market Dealing Basics The London Gold and Silver, Platinum and Palladium Fixings Borrowing, Lending and Forward Transactions Precious Metals Loans and Deposits Precious Metals Forwards Options in the Precious Metals Markets Additional Dealing Facilities Deferred Accounts Spot Deferred Forward Contract Inventory Loans Gold Forward Rate Agreements (FRA) and Interest Rate Swaps (IRS) FRA & IRS Credit Risk Exchange for Physical (EFPs) Support Facilities Vaulting Clearing Standard Documentation Taxation Glossary of Terms Bar Weights 28 28 30 30 30 31 33 34 48 15 16 16 21 23 24 24 25 26 1 2 2 2 3 3 3 4 4 6 6 7 11 12 13 13 13 14

Preface
This guide to the London precious metal markets was produced and is published jointly by the London Bullion Market Association (“LBMA”) and the London Platinum and Palladium Market (“LPPM”). It updates the previous guide issued by the LBMA in 2001 (which covered the markets for gold and silver bullion) and extends the coverage to include platinum and palladium. The publishers are pleased to acknowledge the contribution of Douglas Beadle to the preparation of the text describing the platinum and palladium markets. Any comments or questions about the guide should be sent to its editor, Ms Susanne Capano at the LBMA.

London Bullion Market Association 13/14 Basinghall Street, London EC2V 5BQ. www.lbma.org.uk [e-mail] Tel: [phone] Fax: [phone]

London Platinum & Palladium Market [e-mail] www.lppm.org.uk

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