oa The London Platinum and Palladium Market

The London Platinum and Palladium Market (LPPM) oversees dealings in platinum and palladium. Twice each day, four members of the LPPM fix the bid prices. The bid price is the price at which LPPM members agree they will buy “good delivery” metal. The bid prices are benchmarks for the market and hence for the industry. Bid prices in turn affect the offer prices that customers are asked to pay for metal. The market values of platinum and palladium, as is the case for all commodities, ultimately affect manufacturing costs. Here, the background to the establishment of the LPPM is summarised and its current role in this important metal market is briefly described.