Principles of Conduct. The Warehouse shall: 11.1 Conduct its business with due skill, care and diligence, observing high standards of conduct and safety, complying with the warehouse agreement, the LMEsword Regulations, these principles, the common standards of working practice for warehouse companies, other requirements for warehouse companies set by the Exchange, and Relevant Law and Regulation. 11.2 Not engage in behaviour which would manipulate or distort the Exchange's markets, nor create or attempt to create a disorderly market, nor require or encourage or assist others to do so. In particular, without limitation, not engage in any behaviour which would be likely to manipulate or distort the market with the effect of creating or maintaining a Queue. 11.3 At all times observe high standards of integrity and fair dealing, observe high standards of market conduct, and not enter into any arrangement or agreement that prohibits the provision of any information that the LME requests in its role as a Recognised Investment Exchange. 11.4 Maintain financial resources at or above the minimum level set by the LME to ensure continuity in the provision of services for owners of Underlying Metal. 11.5 Manage conflicts of interest fairly, both between itself and holders of Underlying Metal and between holders of Underlying Metal, ensuring fair and equitable treatment to all holders of Underlying Metal at all times. 11.6 Ensure that all Underlying Metal is stored continuously in good delivery condition and that it is identified and stored so as to facilitate easy access and delivery without undue delay. 11.7 Deal with those placing Underlying Metal on LME warrant, those holding Warrants and those taking Underlying Metal off Warrant on a fair and equitable basis. 11.8 Organise and control its affairs in a responsible manner, keep proper records, retain all relevant documentation, have well-defined procedures for handling Underlying Metal and for delivering it out expeditiously, ensure that its employees or agents are suitable, adequately trained and properly supervised, and that it has well-defined procedures to ensure compliance with this Agreement, the LMEsword Regulations and the Operating Procedures and all other LME rules and requirements applicable to Warehouses. 11.9 Pay due regard to the information needs of Warrant holders by having transparency of: normal hours of work, all delivery in and load-out charges, rent and rent payment dates, and total average daily load-out volume rates by metal and mode of transport. 11.10 Arrange adequate protection for Underlying Metal by insuring it against unexplained losses and losses caused by error, negligence, or fraudulent actions of its servants or agents or its personnel. 11.11 Deal with the LME in an open and co-operative manner, keeping it informed promptly of anything concerning the suitability of its warehouses or its continued suitability as a warehouse company, or about Underlying Metal stored with it or that it knows will be placed on or taken off Warrant, that the LME, as a Recognised Investment Exchange (as defined by the Financial Conduct Authority), which has responsibility for ensuring that its markets are proper and orderly and not subject to abuse, might reasonably expect to be disclosed to it.
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