London Platinum and Palladium Market
| London Platinum and Palladium Market | |
|---|---|
| legal form | Trade association |
| founding | May 5th 1987 |
| Seat | City of London , United Kingdom |
| management | Peter Smith ( Chairman ) |
| Branch | Over-the-counter trading venues |
| Website | www.lppm.com |
The London Platinum and Palladium Market (LPPM) is the most important over-the-counter trading venue for platinum and palladium and one of the globally important commodities trading venues in the City of London . The world market price for platinum and the world market price for palladium have been determined here since 1989 .
history
Trading on the London Platinum and Palladium Market has a much shorter history than trading on the London Bullion Market , which has been going on since the 17th century. The British capital has historically been an important center for platinum and palladium . The trade was introduced at the beginning of the 20th century, alongside the long-established bar metals.
In 1973 some metal dealers introduced the London Platinum and Palladium Quotation, the forerunner of the fixings . An indication for the platinum and palladium price on the spot market was provided twice a day .
In 1979, leading traders from London and Zurich reached an agreement to standardize the origins and specifications for the precious metals they would accept as “good delivery” deliveries.
On May 5, 1987, the London Platinum and Palladium Market was founded in close consultation with the Bank of England , which was then the regulatory authority for the precious metals market. The primary regulator in the UK has since been the Financial Services Authority (FSA).
In 1989 the quotations for platinum and palladium were expanded and developed into full-fledged fixings.
Price determination
The platinum and palladium fixing is carried out twice a day by telephone with the aim of processing as many transactions as possible at a fixed price:
- Morning: Monday to Friday 9:45 a.m. UTC (10:45 a.m. CET )
- Afternoon: Monday to Friday 2:00 p.m. UTC (3:00 p.m. CET).
The meeting takes place every working day and is chaired by Standard Bank. A representative of the
- Standard Bank PLC ,
- BASF Metals Limited,
- Goldman Sachs International,
- HSBC Bank USA NA London Branch and
- Johnson Matthey ,
who are all members of the London Platinum and Palladium Market (LPPM).
Trade structure
The off-exchange trading (English: Over-the-counter, OTC) with platinum and palladium bars is performed by the London Platinum and Palladium Market (LPPM). Its members are large international banks, manufacturers, finishers, processors, producers and distributors around the world. They usually trade among themselves and with their clients on their own account, which means that they bear all of the risks. Its customers are mainly institutional investors .
In contrast to a futures exchange , the OTC market offers a certain flexibility and confidentiality in the transactions that are carried out between the two clients. Not all precious metal traded between the parties changes hands in the long term. Part of the trading volume is speculative transactions.
Good delivery bars
Only bars from refineries and mints that meet certain quality requirements are permitted for trading . Standard bars from LPPM are very heavy and very fineness . The weight of a standard bar made of platinum and palladium with a fineness of 99.95% (“good delivery bar”) may vary between 1 and 6 kilograms (32.151 and 192.904 troy ounces). In addition to the name of the precious metal type (“PT” or “PLATINUM” or “PD” or “PALLADIUM”), the fineness, the manufacturer's brand, the year of manufacture, the weight in grams, kilograms or troy ounces and the bar number must be stamped on the bar be. The bar number is used to identify each bar and is entered in a directory by the producer.
The international seal of approval "good delivery" (German: "in good delivery") guarantees the embossed or stamped features such as fineness and weight as well as constant, uninterrupted storage in accepted storage facilities. Bars with good delivery status are accepted and traded worldwide. In the case of platinum and palladium, the bars are not called “bullion” but “ingot” or “plate”.
One company from Germany ( Heraeus ), four companies from Switzerland ( Argor-Heraeus , Metalor Technologies , Pamp SA, Valcambi ) and no manufacturer from Austria are on the LPPM's “Good Delivery List” .
Web links
- Official website (English).
Individual evidence
- ↑ London Platinum and Palladium Market: List of Members ( Memento of the original of July 22, 2012 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ London Platinum and Palladium Market: Good Delivery Standards ( Memento of the original from July 22, 2012 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ London Platinum and Palladium Market: Platinum List ( Memento of the original from July 22, 2012 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
