LBMA-i is the trade transparency and reporting service for the London Bullion Market Association (LBMA), delivered by Simplitium to meet LBMA’s requirement for a cost-effective service that improves transparency and demonstrates liquidity in the global OTC precious metals market.
The development of LBMA-i has its roots in the Fair and Effective Markets Review (FEMR), which was a comprehensive and forward-looking assessment of the way fixed income, currency and commodity (FICC) markets operate. It was led by the Bank of England, and co-chaired by the FCA and HM Treasury. The three organisations published the final report of the review, including findings and recommendations, on 10 June 2015.
Amongst the recommendations was a call for greater clarity in financial markets. While LBMA already issues clearing statistics for gold and silver, it acknowledged that this was not a full picture of the size of the global precious metals markets. Accordingly, LBMA issued a Request for Proposal (RfP) in 2016 to select a partner who could devise an appropriate mechanism to fully determine the size of the OTC traded market for gold, silver, platinum and palladium. In October 2016, LBMA Board announced that Simplitium had been chosen as the selected trade reporting service provider to deliver LBMA-i.
Simplitium launched LBMA-i in January 2017 in order to deliver the transparency service required in the bullion market.
The transparency that LBMA-i is introducing 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.
By enhancing the transparency, LBMA-i is revitalising the forward market and helping market participants better understand gross turnover and liquidity in loco London and Zurich.
“Trade reporting will mark a new era of transparency for the OTC Market” Ruth Crowell, Chief Executive of LBMA.
Simplitium’s experience in trade reporting and proven ability to handle sensitive and confidential client data gave LBMA full confidence in Simplitium as the selected service provider. LBMA is the world’s authority for the global precious metals market. LBMA has 150 members based in over 30 countries and they encompass every part of the journey in precious metals production. LBMA-i is the exclusive reporting service for all trading members of LBMA and was launched in Q1 2017.
Simplitium has been providing transparency services to the finance industry for over 10 years. During this time, our team of experts have leveraged their experience to deliver market leading services.
Simplitium has had 100% uptime since its inception in 2007
World Class Technology
As a subsidiary of Cinnober, one of the world’s leading clearing and trading technology providers, Simplitium have the stability and structure to ensure secure and reliable delivery of world class service
“This innovative and dynamic technology combination is an excellent fit to deliver the services and infrastructure requirements on behalf of the precious metals market.”
Ruth Crowell, Chief Executive of LBMA