WHAT IS THE ABX?
The Allocated Bullion Exchange (ABX) is the world’s first electronic institutional allocated physical precious metal bullion exchange. It brings price discovery, institutional trading, clearing, storage and delivery services in one online trading environment via its fully integrated trading platform MetalDesk.
WHAT MAKES THE ABX DIFFERENT TO ANY OTHER EXCHANGE?
What makes the ABX unique is the fact that its range of services cover the entire process of precious metals trading: global pricing, the technology needed to access the exchange, funding and trading, clearing and settlement, and storage and delivery. This way, members of the exchange can offer their clients a fully integrated and seamless process, all through the MetalDesk trading platform.
IS ALL BULLION TRADED ON THE ABX ALLOCATED?
Yes, all bullion traded on the ABX is allocated.
Owning allocated physical bullion means that legal title of your investment is in your own name and thus avoids counterparty risk and is safe in any insolvency scenario. At ABX, the bullion an investor purchases is allocated to them with a Holder Identification Number (HIN). This bullion can be stored in the ABX Vault Network or delivered to the client upon request. As legal title to the metal is held by the client, it does not appear on the balance sheet of either ABX or the vault provider. This is considered to be the safest form of bullion ownership.
WHAT IS METALDESK?
MetalDesk is ABX’s market-leading, web-based trading platform, specifically designed for the trading and inventory management of physical precious metals.
WHAT PRECIOUS METALS PRODUCTS CAN BE TRADED ON METALDESK?
A range of physical gold, silver and platinum bars and coins. The complete product list can be found on our website and in our Quality Assurance Framework.
WHAT IS A POOLED CONTRACT?
A pooled contract allows an investor or trader to gain fractional ownership of a larger bar. ABX’s pooled contracts are 100% backed by physical bullion and legal title still always held by the investor.
CAN I TAKE DELIVERY OF A POOLED CONTRACT & WHAT IS THE MINIMUM DELIVERY QUANTITY?
Yes, you can take delivery of a pooled contract when you own the required quantity. The quantity differs per metal type – the minimum delivery quantity can be found in our Quality Assurance Framework.
WHERE ARE ABX’s OFFICES LOCATED?
Physical Address: Level 3, 10 Market Street, Brisbane, QLD, 4000
Postal Address: PO Box 569, Brisbane Qld 4001
Phone: +61 7 3211 3863
Fax: +61 7 3236 1106
Physical Address: Room 8001, 8F, Novel Building, No.887 Middle Huai Hai R.d. Shanghai, 200020, China
Phone: +86 (0)21 3127 3977
Fax: +86 (0)21-612224186
Physical Address: Office 101, Alexandrias 2-4, Bridge Tower, Limassol 3503, Cyprus
Phone: +357 25262656
Fax: +357 25560815
Physical Address: Level 9, Zuellig House, 1 Silom Road, Bangkok, Thailand 10500
Phone: +66 (0)2 231 8171
Physical Address: 745 Fifth Avenue, 5th Floor, New York, NY 10151, USA
Phone: +1 646 768-4272
Fax: +1 25560815
HOW DO I MAKE A REQUEST TO WITHDRAW MY BULLION?
A market participant wishing to withdraw bullion from the ABX Vault Network must submit a Metal Withdrawal Request via MetalDesk to notify ABX and Vault Operator personnel of the pending withdrawal to allow for reasonable steps to be taken to ensure that the market participants’ bullion will be retrieved and/or readied from/at the ABX Vault.
The request must detail:
- From which vault the bullion will be collected
- Requested collection date and time or delivery location
- Contact and identification details at delivery location
- Details of bullion to be withdrawn including number and trading category of bars/coins to be withdrawn
- Total weight of bullion to be withdrawn and package value
HOW DO I TRANSFER MY BULLION FROM ONE ABX VAULT TO ANOTHER?
A trading participant wishing to transfer bullion between ABX Vaults must submit a transfer request on the MetalDesk, detailing:
- The ABX vault from which bullion is to be collected
- The ABX vault to which bullion is to be delivered
- Desired delivery date and time
- Details of bullion to be transferred including
- Volume and trading category of bars
- Volume and trading category of coins
- Total weight of bullion to be transferred
- Package value
WHAT HAPPENS ONCE I PURCHASE BULLION OVER THE ABX?
Once you purchase bullion over the ABX, it will remain in the Secure Storage Area of a given ABX Vault and approved location until you make a request for it to be transferred, withdrawn or relocated.
HOW ARE STORAGE FEES CALCULATED?
Storage fees are calculated daily, and charged monthly in arrears at agreed dates. You will only pay storage on the bullion that you hold at 5:00pm local time at each trading hub; bullion that you own that has not yet been delivered to the vault will not accrue storage fees. You will pay storage fees at the annual rate that has been agreed between yourself and the member/broker of the exchange through which you placed the trade.
WHEN WILL I START PAYING FOR THE STORAGE OF MY HOLDINGS?
You will start paying for the storage of your bullion holdings only once they have been delivered to the ABX Storage Network. Fees will be incurred on all gold, silver and platinum products while they are stored in an ABX Vault.
WHAT ARE THE BENEFITS OF STORING MY BULLION WITH ABX’s STORAGE AND LOGISTICS PARTNERS?
Liquidity: ABX’s exchange consists of deep institutional pools of physical liquidity across the world.
Holdings Management: The holdings management feature on the MetalDesk platform means there will be little to no administrative burden for your firm.
Cost effective: The prices seen on the ABX are indicative of real physical demand and supply forces in particular trading hubs, determined by the direct interaction of buyers and sellers. As such, price discovery is brought to you by real market forces and customer sentiment, as opposed to the typical buy/sell spread given by bullion dealers. The benefits of such locational trading result in significant cost savings in trading, storage and logistics.
Audited holdings: ABX undergoes annual and random audits, stocktake and compliance checks by leading third-party audit and inspection firms. This ensures and guarantees the accuracy of in-vault customer bullion holdings.
Secure: ABX in collaboration with leading independent vaulting and logistic companies, offers comprehensively insured storage.
Insured: Against loss, theft and damage
Global Trade: Investors can trade in 5 major trading hubs (Adelaide, Brisbane, Sydney, Melbourne and Perth) in Australia and another 10 hubs around the world (currently Auckland, Singapore, Shanghai, Hong Kong, Bangkok, Dubai, Istanbul, London, Zurich & New York), storing or taking delivery of their precious metals wherever they are. They can also shift title and move their wealth around the world instantly via the MetalDesk platform.
WHAT KIND OF MEMBERSHIP PLANS ARE AVAILABLE ON THE ABX?
The ABX provides a comprehensive multi-tiered membership structure which offers opportunities to a variety of organisations looking to access the physical precious metals market.
The membership categories are as follows:
Full Members – Full Members are entitled to trade on all products listed on the ABX in all trading hub locations. Full Members may trade on the ABX on a proprietary basis or on behalf of their clients, and are also able to offer a customised version of the MetalDesk platform downstream to their end clients for precious metals trading.
Associate Members – Associate Membership is the second tier of the ABX membership structure for organisations who have been sponsored by a Full Member. Engaging in trade execution and storage, Associate Members introduce and manage Private Clients on behalf of their sponsoring Full Member.
Proprietary Trading Members – Proprietary Trading Members are recognised as a unique class of member and are permitted to trade on the ABX at significantly more attractive rates compared to traditional corporate private clients. This Membership category is specifically designed and ideally suited for trading firms who intend to trade significant volumes of bullion as principal.
HOW DO I JOIN THE ABX?
The ABX is only accessible to members of the exchange who can in turn provide access to their end-clients. All applicants for membership have to undergo official assessment and due diligence review.
To apply for membership, please visit this page and fill out the application form. Your application will be submitted for review and we will be in touch with you as soon as possible to notify you of the success of your application.
WHAT SORT OF PRODUCTS CAN I TRADE THROUGH METALDESK?
ABX provides clients with the opportunity to trade physical gold, silver and platinum products. A detailed list of trading products can be viewed here, in our Quality Assurance Framework and by scrolling down to the section ‘What specific products are available for trade on MetalDesk?’
WHAT COINS ARE AVAILABLE FOR TRADE ON METALDESK?
The following bullion coins are available for trading on the ABX:
|American Buffalo||The United States Mint||99.99%|
|Australian Kangaroo||The Perth Mint||99.99%|
|Austrian Philharmonic||Austrian Mint||99.99%|
|Canadian Gold Maple Leaf||Royal Canadian Mint||99.99%|
|Chinese Gold Panda||The China Mint||99.9%|
|American Eagle||The United States Mint||99.9%|
|Australian Kookaburra/Koala||The Perth Mint||99.9%|
|Austrian Philharmonic||Austrian Mint||99.9%|
|Canadian Silver Maple Leaf||Royal Canadian Mint||99.99%|
|Chinese Silver Panda||The China Mint||99.9%|
|Canadian Platinum Maple Leaf||Royal Canadian Mint||99.95%|
WHAT SPECIFIC PRODUCTS ARE AVAILABLE FOR TRADE ON METALDESK?
|Minted Coins||Varies||See ‘What coins are available for trade on MetalDesk?’|
|1/2oz Pool GD||99.50%||The ½ fine troy ounce gold pooled contract is backed by gold cast bars bearing a serial number and identifying stamp of an approved
|10oz Swiss Bar||99.99%||10oz gold minted bar bearing a serial number and identifying stamp of Credit Suisse.|
|1kg Gold Bar||99.99%||1kg (32.148 fine troy ounces) gold cast bar bearing a serial number and identifying stamp of an approved refiner.|
|Minted Coins||Varies||See ‘What coins are available for trade on MetalDesk?’|
|1oz Pool GD||99.9%||The 1 troy ounce silver pooled contract is backed by silver cast bars bearing a serial number and identifying stamp of an approved refiner.|
|10oz NTR Minted Bar||99.9%||10oz silver minted bars bearing serial number and identifying stamp of NTR Metals.|
|1kg Bar||99.9%||1kg silver cast bars bearing serial number and identifying stamp of an approved refiner.|
|100oz Bar||99.9%||100oz silver minted bars bearing serial number and identifying stamp of an approved refiner.|
|Minted Coins||Varies||See ‘What coins are available for trade on MetalDesk?’|
|1/2oz Pool||99.95%||The ½ fine troy ounce platinum pooled contract is backed by platinum cast bars bearing a serial number and identifying stamp of an approved
|1kg Bar||99.95%||Platinum cast bars bearing a serial number and identifying stamp of an approved refiner.|
HOW DO I SELECT A PRODUCT TO TRADE IN METALDESK?
When you log in to your MetalDesk account, you will notice that on either side of your trading dashboard there are two drop down lists: one where you can select to view either your Market, Watch or Holdings and one where you can select your preferred trading hub and product. The lists will only show the products and trading hubs that are available for the currency you have selected.
HOW DO I PLACE A TRADE?
To place an order, you must first select your desired product and vault location. When you click either the Buy or Sell button, the order ticket window will appear. The default order type is a Market Order; if the Buy or Sell price is selected from the market depth, the default order type will be a Limit Order.
WHAT ORDER TYPES ARE AVAILABLE?
The order types available are Market Orders and Limit Orders.
HOW CAN I SELL BULLION ONCE I’VE WITHDRAWN IT FROM ABX?
Once you withdraw your bullion from the ABX Storage Network, you cannot sell it through the MetalDesk platform again. You will have to find an alternative, off market method to sell it.
The ABX Quality Assurance Framework defines the requirements for depositing bullion to the ABX Storage Network. Only approved Liquidity Providers can deposit bullion to our Network and it must be either direct from the refiner or from the depositing member’s storage facility with an accompanying bar list, stating the refiner, serial number and receiving location for each of the bars being deposited.
A completed paper trail from the refiner to the ABX Storage Network needs to be established before bullion can be accepted for deposit.
HOW DO I SELECT THE TRADING HUB / VAULT THAT I WANT TO TRADE FROM?
You can select your trading hub and vault by clicking the sorting tab at the top of the product list on either side of the screen on your MetalDesk trading platform.
WHY WOULD I ELECT TO TRADE IN A DIFFERENT TRADING HUB?
The MetalDesk gives you the choice and flexibility to have your bullion stored in the city you want, should you choose to take delivery of your bullion in that city at a later date.
You can set your currency either to AUD or USD, with AUD giving you the choice of the 5 major Australian trading hubs (Adelaide, Brisbane, Sydney, Melbourne and Perth) and the USD giving you the choice of global vaults (currently Auckland, Bangkok, Hong Kong, Dubai, Istanbul, London, New York, Shanghai, Singapore, Zurich and Sydney).
WHAT IS A MARKET ORDER?
A market order is placed into the market for execution instantly at the current market price. The quantity can be set on the order ticket either by typing it into the input box or using the plus and minus buttons to define it.
WHAT IS A LIMIT ORDER?
A limit order allows you to trade at a specified price or better. It may not be executed if the price specified is not met, or if the desired quantity is not available at the specified price.
WHAT IS A TRADE CONFIRMATION?
A trade confirmation is generated by MetalDesk when a trade is made and includes details such as Trade Date, Trade Value, any fees which may apply and other such details about the trade. It will also include delivery status information (“To Be Deposited” or “Deposited”).
WHAT IS THE ‘DELIVERY DATE’?
The delivery date is the date the bullion will be delivered to the trading hub and securely stored in the vault.
WHAT DOES ‘BULLION VAULT STATUS’ MEAN?
‘Bullion Vault Status’ will appear on your trade confirmation and will display whether your bullion has been deposited or not. ‘Deposited’ will come up when your bullion is in the vault; ‘To Be Deposited’ will come up when your bullion has yet to be deposited in the vault and will be deposited by the delivery date indicated on the trade confirmation.
HOW DO I BUILD A WATCHLIST?
Select your product from the dropdown list and the chart on your screen will be updated to reflect that product. Next to the Buy and Sell columns on your screen, you will see an image of an eye with the word Watch written next to it. Click on this and the product will be added to the Watchlist and displayed on either the left or right side.
HOW DO I EDIT WATCHLIST?
To remove a product from your Watchlist you follow the same steps as above. Click on the desired product, wait for the chart to update and this time the word Watching will be written next to the image of the eye; click this and the product will be removed from your Watchlist.
I’VE SOLD SOME BULLION, WHEN WILL I SEE THE FUNDS IN MY METALDESK ACCOUNT?
When you sell bullion via the MetalDesk trading platform, the consideration for the trade will appear in your cash balance immediately. The amount credited will be the value of the precious metal you’ve sold, minus the trade execution fee.
I’VE PURCHASED SOME BULLION, WHEN WILL THE FUNDS BE WITHDRAWN FROM MY METAL DESK ACCOUNT?
When you purchase bullion via the MetalDesk trading platform, the funds will be withdrawn from your cash balance upon order confirmation.
If it is a limit order you have placed, your funds will move from your available cash balance to your ‘Reserved Funds’ and will remain there until the limit order is executed or cancelled. If the order is executed, the funds will be transferred to the purchasing party instantly; if it is cancelled, the funds will appear on your cash balance again.
When you place a market order, the funds are withdrawn from your cash balance once the order is confirmed, and your holdings then increase. As soon as the trade confirmation is generated, you automatically receive legal title to the bullion you have purchased.
I’VE PURCHASED SOME BULLION, WHEN WILL I RECEIVE TITLE FOR THE BULLION I’VE PURCHASED?
You receive legal title to the bullion you have purchased the moment the trade confirmation is generated on the MetalDesk.