A Brief History
Platinum and palladium have a very recent history, unlike gold and silver, which have been known since the earliest civilisations. Platinum was only categorised as a precious metal in 1751 and palladium was isolated as a separate metal less than 200 years ago. In this relatively short period and despite only limited availability of the metals, they have made major contributions to modern scientific progress.
London has always been an important centre for the metals. Trading was established in the 20th century, usually alongside the longer established bullion metals.
In 1973 the London Platinum Quotation was introduced. It was the forerunner of the fixings; a twice-daily indication of the market price for spot platinum, reported by some of the principal companies dealing in the metal.
In 1979 the leading London and Zurich dealers reached an agreement to standardise the specifications and provenance of metal which they would accept as good delivery.
In 1987 the informal trading which had taken place for many years on a principal to principal basis was formalised via a Deed of Establishment into the London Platinum and Palladium Market.
In 1989 the London Platinum and Palladium Quotations were expanded and upgraded to full Fixings.
On 1 December 2014, the London Platinum and Palladium Fixing Company (‘LPPFCL’) ceased to administrate the London Platinum and Palladium Fixing Processes. The administration, by the London Metal Exchange (LME) of new benchmarks – the LBMA Platinum Price and the LBMA Palladium Price – was launched, with the agreement of the London Bullion Market Association.
The Market has three categories; Full, Associate and Affiliate :
Full membership of the Market is open to those companies currently engaged in trading and dealing in platinum and palladium as above and are recognised by the Management Committee as offering additional services to the market, including market-making, clearing services, refining or manufacturing.
Associate membership is open to companies which are recognised by the Management Committee as being currently engaged in trading and dealing in platinum and palladium and have an appropriate level of net assets and experience.
Affiliation is open to those companies which fail to meet the normal requirements of Full or Associate membership as above but are recognised by the LPPM as being involved with or offering support to the global platinum and palladium markets.
LPPM Affiliated Exchange membership offers access to the LPPM Good Delivery List and the right to use it as a delivery standard for their Exchange. Any Exchange involved in Platinum and Palladium Group Metals may apply to the Management Committee for LPPM Affiliated Exchange membership through the normal process and their application would need the support of two Full Members.
The Market is managed by a Chairman and Management Committee, elected annually by members. Leading organisations dealing in platinum and palladium in major centres worldwide are represented on the London Market.