One of the recommendations from the Fair and Effective Markets Review (FEMR), published by the Bank of England, Financial Conduct Authority and HM Treasury in June 2015, was to improve transparency in the financial and commodity markets.
The London Bullion Market Association (LBMA), the international trade association that represents the wholesale over-the-counter (OTC) market for precious metals, has since taken significant steps towards creating a more transparent marketplace.
One way in which the LBMA wants to improve the transparency in the market is by revealing the real size and liquidity. In order to achieve this, the LBMA released an RFP in 2016 with the aim of finding a technology partner that could deliver new services to the precious metals market and in doing so improve transparency, efficiency and expand the technology requirements in the market.
In October 2016, the LBMA announced Simplitium, in a joint submission with Autilla, as the chosen provider for the transparency project.
Autilla is developing LBMA-i, a centralised trade reporting service for London Bullion Market Association members.
It was formed in direct response to demand for a simplified, cost-effective reporting service that improves transparency, generates liquidity and meets regulatory demands.
LBMA-i will introduce post-trade transparency for Gold, Silver, Platinum and Palladium products.
The transparency that the LBMA-i has introduced is creating a more accurate picture of the size and shape of the market; promoting transparency for existing and potential investors; and stimulating confidence in the liquidity and efficiency of the OTC market.
“This is an innovative and dynamic technology combination and as such are an excellent fit to deliver the services and infrastructure requirements on behalf of the precious metals market.” Ruth Crowell, Chief Executive of the LBMA.
For more information see LBMA-i.com