We currently work with the London Platinum and Palladium Market to administer and distribute LBMA Platinum and LBMA Palladium Prices (the “LPP Prices”). This solution is delivered via our custom-built electronic auction platform, LMEbullion.
How the prices are discovered
The auctions for both platinum and palladium take place twice daily, once in the morning starting at 09.45 and once in the afternoon starting at 14.00 (London time). As soon as the platinum price is discovered, the palladium auction commences.
LMEbullion delivers fully automated price-display auctions. House traders, client traders and direct clients of participants are shown a potential execution price and asked to indicate their interest. If the interest of all participants is within the permitted tolerance, the price will be confirmed and consequential trade allocations are distributed back to the participants. If the imbalance is outside the permitted range, a new price will be calculated and displayed to the participants in order to commence the next round.
The LME’s auctions are controlled so that they only progress if there are sufficient participants present (the Quorum). Once the price has been confirmed, and the trades allocated, the price is disseminated via LME.com and data distributors. All transactions in platinum and palladium are Loco London and are settled on a bilateral basis.
The LPP Prices are benchmarks administered by the LME pursuant to the UK Benchmarks Regulation (BMR) (and collectively constitute the LPP Prices Benchmark Family). For more information on the LME’s authorisation, please see Benchmark Regulation.
Links to the LPP Prices benchmark statement and methodology (the methodology is embedded in the LBMA Platinum and LBMA Palladium Prices Regulations) can be found below:
A full list of the LME’s prices, including information on which of these prices are benchmarks under the UK BMR, is included in the LME List of Benchmarks (PDF).
The current member participants entitled to participate in the LPP Prices Discovery process on their own account, or on behalf of its clients, are as follows:
- BASF Metals Ltd
- Goldman Sachs International
- HSBC Bank USA NA
- ICBC Standard Bank plc
- Johnson Matthey plc
- StoneX Financial Ltd
For information on how to become a participant, please email the Precious Metals Team.
Category 1 and 2 Client Participants
Category 1 Client Participants may enter Orders directly into LMEbullion and will be supervised by LME, and Category 2 Client Participants may enter orders directly into LMEbullion and will be supervised by a Member Participant.
Category 1 Client Participants:
- DRW Investments LLC
Access to Prices & Licensing
The LME administers the licensing of the LBMA Platinum and LBMA Palladium Prices to firms who wish to redistribute, use the data as a reference in transactions, for pricing and valuation services or for the creation of derived products, such as indices and ETFs.
All use of LME and LBMA data is subject to applicable licensing requirements. Further information, including types of usage licence, is available on the Market Data Licensing page.
The prices are published twice daily, shortly after both prices have been confirmed, and consist of morning and afternoon outright prices for platinum and palladium in USD; volumes offered and wanted; and a total imbalance. Prices are expressed per troy ounce. The LME may also convert the LPP Prices from USD to EUR and GBP, or such different currencies as the LME determines, however these converted prices are not benchmarks. The prices are made available on the LME website on a T+1 basis.
The live auction website provides real-time auction updates, prices being tried and total volumes. Monthly averages for LBMA Platinum Price and LBMA Palladium Price will be published on the last business day of each month.
Live prices can also be accessed from LME-licensed data distributors.
The complaints-handling procedure for the LBMA Platinum and LBMA Palladium Prices is set out in Schedule 7 of the LBMA Platinum and LBMA Palladium Prices Regulations (download above).
If you have any questions about the LBMA Platinum and LBMA Palladium Prices, please contact the Benchmark Pricing Function by email email@example.com