PERTH (miningweekly.com) - Trading officially started on Monday on Australia’s first physical bullion exchange, the Australian Bullion Exchange (ABX).
The ABX started operations with a soft launch phase with trading initially limited to select brokers and investors on an invitation-only basis. Following this first phase, a list of registered broker members would be provided on the ABX website and retail investors would be able to trade on the ABX through one of the broker members.
The ABX is an over-the-counter spot market for investment-grade gold, silver and platinum bullion, and is a principal-to-principal investment market formed through a member structure of finance and bullion industry participants. The ABX provides a holistic investment facility also offering investors custody services including storage, transport and insurance.
“This is Australia’s first centralised market to buy and sell investment-grade bullion. Previously, investment options for direct ownership of physical bullion have been limited. The ABX provides a marketplace that is simple, secure and highly accessible while creating competition and increasing market efficiency,” said ABX CEO Thomas Coughlin on Monday.
He noted that the ABX was the product of almost two years of planning and considerable investment in infrastructure to ensure world best practice quality assurance frameworks, security, technology platform and governance structures.
“There has been considerable interest from industry participants including current and prospective members. In the near future, we expect to be in a position to name a number of members, including large national and international parties,” said Coughlin.
The market will be priced on the ABX Australian spot price for gold, silver and platinum in nine different currencies, and the price would be determined by supply and demand forces for Australian bullion. The prices for each of the precious metals would be published daily on the company’s website.
Trading on the ABX is between 9am and 5pm during weekdays with plans to trade 24 hours a day, seven days a week in the future.