ABX unveils world’s first institutional precious metals exchange
The world’s first global electronic exchange for allocated physical precious metals launched yesterday.
The Allocated Bullion Exchange (ABX) will cater for institutional bullion traders, providing market participants with integrated, transparent, and secure access to global liquidity pools. The ABX commences operations by offering Gold, Silver and Platinum services, with additional trading instruments added at a later stage, subject to client demand.
According to the ABX, its newly launched platform offers “a modern, revolutionary solution to the precious metals industry by migrating the institutional trade and storage of physical precious metals into the electronic environment and significantly reducing the barriers for entry to the wholesale physical bullion market”.
Through its unique proprietary and online trading platform ‘MetalDesk’, ABX provides instant electronic global trading, price discovery, and clearing facilities to market participants worldwide, including all physical industry participants, wealth managers, brokerage platforms and investors.
Market analysts expect the ABX will enhance price transparency, access and efficiency for precious metals producers, traders and investors globally. By incorporating the entire precious metals trading and investment process into one holistic process, ABX aims to create a mutually beneficial online environment for bullion market participants.
The ABX allows bullion transactions to be centrally cleared, transparent market activity and cost-effective allocated exchange system where clients are able to trade, deliver or store physical precious metal in 11 locations around the globe.
If ABX is able to generate sufficient trading volumes, the new bullion exchange could significantly disrupt existing methods of physical bullion trading, which are slow, inefficient, inaccessible and lack transparency, resulting in high costs and creating a disincentive for precious metals producers, traders and investors.
According to ABX CEO Tom Coughlin, the ABX has “several major industry players already signed up to join the marketplace” while the ABX goes ahead with its soft launch.
“The soft launch of the ABX is the culmination of many years of hard work and planning in developing a modern, transparent and efficient solution for the trading of allocated physical precious metals” he added.
“Our team has been working on this vision for more than five years now, so I am extremely proud to finally be introducing the exchange to the precious metals industry. At a time of high volatility in global markets and resurgent interest in precious metals, the launch of ABX is expanding access, enhancing efficiency and raising transparency in a market that historically has been opaque.”
ABX will be operating as membership-based exchange primarily for institutions, offering value to a wide range of market participants including precious metal producers, refiners, intermediary broker-dealers, asset managers, institutional and private investors, manufacturers and jewellers.
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