About Membership

Join the world’s only independent authority for precious metals

  • Have a seat at the table to steer the future development of the global industry
  • Help advance standards and expand the industry
  • Gain market insight through access to specialist resources, expertise and advice
  • Grow your network with knowledge, contacts and expertise
  • Full Members

    Who can apply to become a Full Member of the MCBIH

    Full membership of MCBIH is available to companies in the UK and abroad. All members must be operational in areas that are closely related to the London bullion market. These activities include trading, broking, shipping and storage, mining, refining, inspection and assaying and research. For companies who trade bullion and derivatives, this means trading bullion or related derivatives, such as forwards and options, in the loco London market with at least three existing members. Membership on the part of individuals is not permitted.

    Application Requirements

    Companies applying for Membership of MCBIH need to name three MCBIH members as attesters when submitting their application. These should be members with which the applicant has had a bullion-based trading relationship for at least one year. MCBIH require each attester to supply a letter of recommendation, confirming the extent of their bullion-based relationship.

    Terminal Markets Order

    Members of the MCBIH can trade under the terms of the Terminal Markets Order (TMO). Within the UK, silver and non-investment gold remain under the scope of the TMO under an agreement reached between HM Revenue & Customs and the MCBIH. This legislation is a simplification mechanism which applies a “zero rate” of VAT to sales of goods ordinarily dealt with on the market. This enables sales between a Members and between a Member and a non-member to be treated as zero-rated, provided the Member retains effective physical control of the metal, or they ship it outside the UK on behalf of the non-member. These trading arrangements are often referred to as the "Black Box".

    For more detailed information on application requirements, click here.

    Full Member Reviews

    Full Members are reviewed periodically in line with the MCBIH Due Diligence Policy. This process is designed to audit continued engagement with the Bullion Market and to ensure that Due Diligence standards are being maintained.

  • Market Making Members

    Market Making Membership is open to existing Full Members. Market Making Members are consistently willing to quote prices and enter into transactions, as principal, for the purchase and sale of gold, silver, platinum and/or palladium for spot or for forward settlement or of options on gold, silver, platinum and/or palladium in the London Bullion Market, at prices determined by it generally throughout recognised working hours each business day.

    Products in which prices are quoted

    The three products relevant to MCBIH market making are Spot (S), Forwards (F) and Options (O). There are twelve MCBIH Market Makers who provide the service in one, two or all three products. They are required to make markets by quoting two way prices in both gold and silver to the other Market Makers in the same products. Market Makers offering spot, forwards and options are known as Full Market Makers and those providing only one or two of the products are known simply as Market Makers.

    Who are the MCBIH Market Makers?

    Of the twelve MCBIH Market Makers, six are Full Market Makers and six Market Makers. The six Full Market Makers quoting prices in all three products are:

    • Citibank N A
    • Goldman Sachs International
    • HSBC
    • JP Morgan Chase Bank
    • UBS AG
    • Morgan Stanley & Co International Plc

    The six MCBIH Market Makers who provide two way pricing in either one or two products are:

    • Scotiabank (S,F)
    • BNP Paribas SA (F)
    • ICBC Standard Bank (S)
    • Merrill Lynch International (S,O)
    • Standard Chartered Bank (S,O)
    • Toronto-Dominion Bank (F)

    The benefits of Market Making Membership, apply to all Market Makers, subject to the conditions of the Articles of Association.

    Requirements of Market Makers

    Market Makers are required to respond quickly to requests for prices from other Market Makers, providing two-way price quotations in line with current market conditions, and to offer the service during normal London bullion trading hours. These are 8:00am until 5:00pm or, on days when the New York market is closed, until the London PM gold fixing. There is an understanding between the Market Makers that the maximum quantities for which prices can be requested are as follows:

    Metal

    Spot

    Forwards

    Options
    Gold 5,000 oz 100,000 oz to 6 months 50,000 oz from 6 months to 2 years 32,000 oz from 2 to 5 years * 50,000 oz during the period 1 week to 3 years
    Silver 100,000 oz 1M oz up to 6 months 500,000 oz from 6 months to 1 year 250,000 oz from 1 to 3 years 1M oz from 1 week to 1 year 0.5M oz from 1 to 3 years

    * Most Forward Market Makers will quote gold forwards from 1 to 5 years, on either a swap or an IRS basis at the request of the caller.

    Definitions of Spot, Forward and Options

    Spot (S). The current price in the physical market for immediate delivery of gold. This is normally taken to mean loco London delivery two working days after the date of the deal.

    Forward (F). A transaction in which two parties agree to the purchase and sale of gold at a future date, commonly 1, 3, 6 and 12 months but also for longer dated tenors or dates into the future (see table above). Forward contracts are an important part of many swap arrangements.

    Options (O). This gives the holder the right, but not the obligation, to buy or sell gold at a pre-determined price by an agreed date, for which he pays a premium (or a cost). The premium is the amount of compensation the seller receives from the buyer. The right to buy is commonly referred to as a call option and the right to sell as a put option.

  • Associates

    Who Can Apply to Become an Associate of MCBIH

    The Associate category attracts a range of international market participants. These include traders in other markets, or companies that are active in functions relevant to the London bullion market like mining, inspection, assaying and consultancy related activities. Refiners who are interested in applying to become an Associate need to apply for GDL status before doing so.

    Requirements

    Companies applying to be an Associate need to name three MCBIH Members as attesters as part of their application. These should be companies with whom the applicant has had a bullion based trading relationship for at least one year. MCBIH will require each attester to supply a letter of recommendation, confirming the applicant's suitability for Membership, together with a description of the scope and duration of their bullion-based relationship.

    You can find the list of attesters on the MyMCBIH portal alongside additional details regarding the minimum level of attestation required, specific to your company type.

    Associates

    Associates are not members of the MCBIH and therefore do not have the same voting or UK regulatory status as Members. They have limited scope to attest applicants and, as they are not considered as members of the market by HMRC, they cannot trade under the terms of the Terminal Markets Order. Associates do, however, benefit from a range of MCBIH services including discounted fees for events such as conferences and forums organised by the MCBIH, as well as access to publications, all of which foster good trading practices and communication.

    Associate reviews

    Associates are reviewed periodically in line with the MCBIH Due Diligence Policy. This process is designed to audit continued engagement with the Bullion Market and to ensure that Due Diligence standards are being maintained.

    For more detailed information on application requirements, click here.

  • Exchange Affiliate

    Who Can Apply become an Exchange Affiliate Member of the MCBIH

    The category of Exchange Affiliate Member is a subsidiary classification of Full Member and is solely open to any Market Exchange operating companies that wishes to become a Member of MCBIH. No other classification of Membership is available for Exchange operating companies.

    Application Requirements

    Companies applying for Exchange Affiliate Membership need to name three MCBIH Members as attesters within their application. Nominated attesters should be companies with whom the applicant has had a bullion based trading relationship for at least one year. MCBIH will require each attester to supply a letter of acknowledgement confirming the applicant's suitability for Membership, and a description of the scope and duration of their bullion-based relationship.

    Exchange Affiliate Status

    The rights, obligations and conditions of Exchange Affiliate Membership are directly linked to those of Affiliate Member Class of Membership (also a subsidiary classification of Full Member) as defined in the MCBIH Articles of Association. The principle difference is that there is no requirement for an Exchange Affiliate applicant to have an affiliation with another Member of MCBIH.

    Membership Reviews

    The status of each Exchange Affiliate Member is reviewed periodically in line with the MCBIH Due Diligence Policy. This process is designed to audit continued engagement with the Bullion Market and to ensure that Due Diligence standards are being maintained.

  • How to Join

    Your Application

    Full details of the application process and Members obligations can be found within the Rules for Members and Associates.

    Applicants must complete an application form via the MyMCBIH portal. Here you will need to provide details on the following:

    • Company Details
    • Business Activity and Organisations
    • Policies and Code of Ethics

    For more information, guidance or support, please contact us at mail@mcbullioninvestmentholdings.com.

    Fees

    All Applicants must submit an application fee of £1,000 (plus VAT if applicable). Please note this is non-refundable.

    On admittance to the Association, an annual subscription is payable. Since membership runs from 1 January to 31 December, subscription fees will be adjusted pro-rata throughout the first Membership year. This subscription fee must be paid before the publication of any admittance decision is made. This annual subscription fee may vary from time to time. The fees for 2020 are as follows:

    Market Maker £16,400
    Full Member £8,400
    Exchange Affiliate £8,400
    Associate £5,250