The London Platinum and Palladium Market (LPPM) is the largest clearinghouse will counter for platinum and palladium exchange. She is responsible for listing the course and the price of platinum and palladium since 1989.
London has historically been a major center for research and development in most of platinum group metals. The London Platinum and Palladium Market has a long history in the fixing of Platinum (XPT) and palladium (XPD) quotation.
The history of the London Platinum and Palladium Market is much more recent than the London Bullion Market, which is performed since the 17th century. London has been a historically important center for platinum and palladium. Negotiations were launched in the early 20th century, alongside the metal bullion more established.
In 1973, metals traders established the London Platinum and Palladium quotation. Prices of platinum and palladium were paid twice a day on the spot market.
In 1979, primary dealers in London and Zurich signed an agreement to normalize the origin and characteristics of metals as well as the quality of services.
On May 5, 1987, the London Platinum and Palladium Market was established with the help of the Bank of England, former governor precious metals market at that time. Currently, the primary regulator of the UK’s Financial Services Authority.
In 1989, quotations for platinum and palladium were extended to full-fledged fasteners.
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How the platinum and palladium prices are fixed ?
Twice a day, fasteners of platinum and palladium spot prices are established during the following hours:
Morning : Monday to Friday at 9:45 UTC (10:45 CET).
Afternoon : Monday to Friday at 14:00 UTC (15:00 CET).
In those hours, 4 members of the LPPM (large international banks, producers, refiners, manufacturers, distributors and industrial) set the offer price. The offer price is that at which the members of the LPPM guarantee the price at which they will buy. The offer price for metals are benchmarks for the market and therefore to the industry. The offer price, in turn, affect the bid price that customers are asked to pay for the metal.