Global Precious Metals Code

Established by the London Bullion Market Association in consultation with its members, as well as participants from the wider Precious Metals market and published in 2017, the Global Precious Metals Code is a set of guiding principles by which New Zealand Gold Merchants govern our business.

It sets out the standards and best practice expected from participants in the global Over the Counter wholesale market for Precious Metals. It includes ethics, compliance, governance and risk management as well as pre-trade, execution and post-trade business conduct.

The four leading principles promote and support fair, effective, open, transparent and responsible engagement within the market. The summary of these principles are as follows;

Ethics: Market participants are expected to behave in an ethical and professional manner to promote the fairness and integrity of the Precious Metals market.

Governance, Compliance and Risk Management: Market participants are expected to have a sound and effective governance framework that provides clear accountability and comprehensive oversight of Precious Metals activity. Market participants should also have a compliance and risk framework that provides for a robust control and compliance environment which effectively identifies and manages the risks associated with their engagement in the market.

Information Sharing: Market participants are expected to be clear and accurate in their communications. Market participants are also expected to protect confidential information and to promote effective communication that supports a robust, fair, open, liquid and appropriate transparent Precious Metal market.

Business Conduct: Market participants are expected to effectively manage each stage of the transaction life cycle, i.e. pre-trade, execution and post-trade, in order to promote a robust, fair, open and appropriately transparent Precious Metals market.

The full code is readily available here.