Why ABX

The World's Leading Institutional Exchange For Allocated Physical Precious Metals

Over the last decades, the world has seen a shift from open outcry and manual trading to electronic systems that not only eliminate the requirement to have such phone broking or dealing desks but dramatically increase market efficiency and price transparency.  The precious metals market has lagged in this respect. It is this historical status quo that ABX has disrupted and transformed with the pioneering MetalDesk platform, which constitutes a standardised electronic environment that has been built to facilitate physical gold trading and to function as a gateway of accessibility to both wholesale physical market participants and retail investors.

ABX provides a true global physical bullion marketplace that is both scalable and efficient. The scalability of the ABX platform makes its application ideal across a diverse range of market sectors and presents a correspondingly diverse range of value propositions.

This scalability and versatility, coupled with our unique price discovery mechanism, ensure that we effectively match the needs of all our target markets and also cater to the regional needs of physical bullion traders around the world.

How ABX has transformed OTC trading in the Precious Metal Industry

Born out of the need for change in the precious metals industry, ABX has created a new infrastructure and standard for the industry and offers precious metal producers, traders and dealers a marketplace where they are able to source, deliver or store physical precious metal in 7 global locations, acting as liquidity providers or takers to manage and capitalise on regional supply and demand trends.

A 23 hours a day 5 days a week market, real-time price discovery, price transparency, institutional liquidity and a point-click-trade electronic process provide an attractive alternative to the existing methods of physical bullion trading.

How the Wealth Management and Online Broking Industry benefit from the ABX Solution

Historically unable to properly take advantage of the diversification benefits that precious metals investment unequivocally introduces, wealth managers and online brokerage firms have up until now not had the means by which to offer an efficient physical precious metal offering to their clients. With ABX, they are now able to offer an end-to-end physical precious metals trading and investment solution to their clients without the need for direct investment in technology development, allowing them to tap into longer-term investment funds and to diversify their business through a newly expanded global market.

Traders and Investors

The ABX provides investors for the first time with unparalleled access to the allocated physical bullion market, allowing them in turn to enjoy true safe-haven investments in a seamless online trading environment and to use their gold or silver bullion as collateral to maximise trading opportunities in other asset classes.

Read more about the benefits of Trading And Investing In Precious Metals With ABX.

The Keystones of the ABX

Global

ABX introduces a truly global wholesale bullion market, interfacing 7 major global trading centres and bringing price discovery, storage and clearing facilities into one online trading environment.

Displaying live market pricing from 7 trading hubs worldwide, 23/5 on the MetalDesk trading platform. The exchange brings together 7 global vaulting, storage and delivery locations. The solution allows for electronic transfer of precious metals dramatically eliminating the need for expensive physical transfer and delivery logistics.

Allocated

Providing allocated physical precious metals for investment, giving clients full legal title and ownership of their bullion and protecting them against counterparty risk.

The large majority of purchased gold in the world today is unallocated, especially when bought through the banking system. Concisely put, this means that you do not own the gold but the bank does, opening you up to counterparty risk. The exchange has redefined and circumvented the way gold has traditionally been traded. All bullion on the exchange is stored on an “allocated” basis. This means that legal title remains with you, the client, at all times and that your ownership and legal title to the bullion would survive any insolvency scenario

Secure

Offering a highly secure precious metal trading and investing ecosystem through world leading enterprise grade technology and infrastructure for clearing, vaulting, logistics, audit and inspection.

ABX’s storage solution is offered through partnerships with the largest secure logistics providers in the world: Malca-Amit, Loomis International and Armaguard. Industry specialists, Inspectorate and BDO, provide inspection and audit services on all bullion stored in the ABX Vault Network.

Efficient

All market participants across the full physical trade cycle are provided with optimised automated efficiency and cost-effectiveness.

ABX has created a vertically integrated business model which includes the full range of services seen in the precious metals trading cycle, from price discovery, institutional trading, clearing, storage and delivery services. In doing so, ABX facilitates trade that is more operationally efficient and cost-effective for exchange participants across the globe, backed by a triple layered security system.

Liquid

Regionally priced but globally fungible deep pools of liquidity are offered by industry leading physical market participants who are spread across the world.

Multiple liquidity providers located around the world provide around the clock live pricing. Through MetalDesk you have access to this unique physical gold, silver and platinum exchange, which gives you the ability to tap into and enjoy the exchange’s higher liquidity and tighter spreads; benefits that are key considerations to any trader or investor and clearly outweigh the traditional method of purchasing gold in a shop.

Accessible

Providing all market participants, from miner to consumer, with direct wholesale bullion market access, optimising the trading and investment activities of all.

The ABX presents precious metal producers, traders and dealers the opportunity to source, trade or store 7 physical precious metal in global locations, acting as liquidity providers or takers to manage and capitalise on regional supply and demand trends. Asset Managers and brokers can access the exchange to either act on behalf of their clients and/or disseminate a white-labeled MetalDesk platform to their clients, enabling them to trade on their own account.