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Screenshot of a breaking news alert e-mail from Q2 2017
European Commodity Clearing (ECC) and the Allocated Bullion Exchange (ABX) announced that they have agreed to cooperate in the field of clearing and settlement. ABX, established in 2011 with its headquarters in Brisbane / Australia, operates the exchange platform for spot allocated physical precious metals, offering trading services for gold, silver and platinum contracts.
Under the agreement, ECC will provide clearing and settlement services for the international US-Dollar nominated contracts listed on ABX. The related extension of ECC’s service offering is envisaged for 2018 and is subject to final approval by the regulatory authorities.
Since its inception in 2011, ABX has modernised, globalised & integrated the precious metal markets by redefining the way physical bullion is traded. It connects all major global liquidity centers to break down the barriers of entry to the global wholesale market for market participants.
We are very excited about the partnership with ECC”, said Eric Maine, Chief Strategy Officer of ABX. “Bringing one of the largest financial markets onto an electronic, institutional trading platform which is centrally cleared by ECC and their 23 global clearing banks and 400+ member firms, is a major step for both ABX and for the precious metals industry. ABX and ECC’s efficient, cost-effective, transparent and robust centrally cleared model is what the global physical precious metals industry and related regulatory bodies have been waiting for, and represents a superior and viable alternative to the opaque, legacy, unallocated market.
By cooperating with ABX, we will be able to extend our clearing offering to a completely new asset class supported by our 24/7 spot clearing service”, comments Dr. Thomas Siegl, Chief Risk Officer of ECC. “Offering clearing services for ABX forms yet another milestone for us as a specialist multi-commodity clearing house and enables us to connect new trading participants to our network.