New global exchange for precious metals New global exchange for precious metals - February 12, 2016
Allocated Bullion Exchange (ABX) has today launched as the world’s first global institutional electronic exchange for allocated physical precious metals, which will provide market participants integrated, transparent, and secure access to local markets and global liquidity pools.
The exchange will allow qualifying institutional participants the ability to trade physical silver, gold and platinum via an electronic exchange in 11 locations. These are: Sydney, London, New York, Singapore, Hong Kong, Shanghai (Free Trade Zone), Bangkok, Zurich, Istanbul and Dubai. It will offer holistic institutional trading facilities (trading, clearing, settlement and technological facilities), as well as storage and delivery services.
“We are integrating all the trading hubs around the world which should break down barriers,” says ABX CEO, Tom Coughlin. “So you can trade the physical across different markets, and as the trade develops we expect there will be a tipping point where the regional arbitrage opportunities will be mitigated.”
ABX will extend to market participants including precious metal producers, refiners, intermediary broker-dealers, asset managers, institutional and private investors, manufacturers and jewellers.
ABX will act as a central clearer, and Coughlin expects the exchange will be much cheaper than competing options like ETFs. “We are about the third of the cost of an ETF. Instead of gaining ownership of units in a trust, in comparison with us, you can choose to accept delivery. You hold title of the physical metal.”
While participants will trade anonymously, real-time market data will be made available to data providers, which should enhance transparency.
Further information on the exchange is available through the website
www.abx.com.
https://www.mineweb.com/news/silver/new-global-exchange-for-trading-physical-precious-metals/ The above should be good for miners and investors