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.
With ABX directly clearing and settling its trades, Proprietary Trading Members are admitted membership at the sole discretion of the ABX based on their holdings and trading activity. Proprietary Trading Members are not permitted to buy as an agent for another as a Full Member may; they can trade solely on their own house account.
Proprietary Trading Members will be organisations that maintain high volume transactional trading and storage holdings. This category of Membership is best suited to:
Proprietary Trading Firms
Exchange Traded Funds (ETFs)
Institutional Superannuation/Pension Funds
Institutional Bullion Traders
Before an Application for a Proprietary Trading Membership is approved, the Exchange will conduct the necessary due diligence to establish, amongst other things:
(a) The Applicant’s capital adequacy
(b) The Applicant’s expertise and experience
(c) The Applicant’s current and future precious metal holdings and trading activity
(d) The Applicant is not subject to insolvency or any conduct unbecoming of a professional financial institution