ASX and The Perth Mint (Gold Corporation) today announce the signing of an agreement to develop new precious metals derivatives products that will be quoted and traded on the Exchange.
The collaboration will see ASX enlarge its suite of commodities products and services, backed by the physical market infrastructure of The Perth Mint. The first product is set to be launched in the second half of 2016.
The derivatives products will offer precious metals market participants and investors a transparent and relevant forward price curve, providing them with the means to more effectively hedge their exposures. The new products will add to the highly liquid physical market for precious metals that already exists in Perth.
Mr Peter Hiom, ASX’s Deputy CEO said:
“The collaboration between ASX and The Perth Mint is the perfect fit for our companies and our customers. It brings together ASX’s derivatives expertise with the scale and sophistication of The Perth Mint’s precious metals operations. The result will be financial instruments closely aligned to the underlying market, which are tailored to the needs of producers and investors, and other market participants in the Asian region.”
“We look forward to working with ASX to develop exchange-traded products that will further broaden distribution channels for Australian gold and support Perth’s role as an international bullion centre. The combination of ASX’s clearing and settlement infrastructure, backed by its significant capital and collateral, and The Perth Mint’s global expertise in precious metals refining, manufacturing, distribution and storage, supported by a Western Australian government guarantee, will provide certainty for traders and investors and reduce counterparty and systemic risk.”
To view the official announcement on the collaboration, click here.