Glossary
ABXconnect: The ABXconnect platform encompassing the ABX Trade Management System (TMS).
ABX Floor Traders: Employees of ABX assigned to facilitate Member Telephone Trading. Each Floor and Clearing Member with Broker Trading Rights will be assigned a specialist ABX Floor Trader for taking orders and executing trades on behalf of Members.
ABX Good Delivery List: A refinery or mint approved by the ABX to supply bullion bars and/or coins which the Exchange’s Approved Vaults. All ABX Good Delivery List Members must, as a minimum requirement for inclusion on the ABX Good Delivery List, be listed on the London Bullion Market Association (LBMA) Good Delivery List.
Allocated Storage Account: An allocated bullion custodial storage service facilitated by the Exchange and provided by Members. An Allocated Storage Account provides the Member, or the Client of the Member, with outright bullion ownership in a segregated bullion bar or coin.
AML/CTF Legislation: Includes the legislative rules, regulations, obligations and procedures as promulgated by the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Commonwealth).
Annual Metal Value Storage Rate: The annual percentage rate charged by ABX for storing precious metal bullion within an ABX approved vault.
Approved Vault: Any vault or depository institution that the ABX has deemed appropriate to utilise for the storage of bullion that may be traded on the Exchange.
Associate Member: Members of the ABX that are nominated and sponsored by a Floor or Clearing Member.
Board of Directors: Individuals that hold membership on the Board of Directors of the Australian Bullion Exchange Limited.
Brady plc: The trading and management software developer and solution provider for the ABX. Brady plc (BRY.L) is a leading global provider of trading and risk management software to the worldwide commodity and energy markets.
Brokerage Fee: The fee charged by a Broker Member to a Client for the brokerage of a bullion trade.
Broker Member: Members with Broker Trading Rights.
Broker Trading Rights: A right extended to a Member of the Exchange who is permitted to access and to trade by way of Telephone Trading and/or through ABXconnect. Broker Trading Rights include the right for Broker Members to trade on its proprietary account and/or on behalf of Client accounts.
Clearing Fee: A fee charged by a Floor or Clearing Member for guaranteeing and executing their respective Sponsored Members trades.
Clearing Member: A Member of the Exchange who is highly capitalised, closely monitored and individually selected by the Exchange to hold Clearing Rights.
Clearing Rights: A right extended to a Clearing Member to execute and guarantee all Exchange Contracts effected through the Exchange by its Sponsored Members and any Clients of those respective Sponsored Members.
Clients: The clients of Broker Members of the ABX.
Code of Conduct: A document that outlines the conduct expected of market participants on the ABX. It provides best practice guidance and common market convention that should be upheld and abided by all ABX market participants.
Custodial Agreement: An agreement to hold bullion in safe custody for the title holder of the bullion.
Delivery Date: The date set by the ABX requiring the delivery of physical bullion to an Approved Vault by a Market Maker or Physical Supply Member on or before that date. This date falls on the last Good Business Day of each month and relates to the prior Trading Cycle.
Deposit Fee: A fee charged by the Exchange for the deposit of a Member’s bullion into an Approved Vault so that bullion may be traded upon the Exchange.
Exchange: The Australian Bullion Exchange (ABX).
Exchange Contract: A contract admitted for trading on the Exchange.
Exchange Traded Funds (ETFs): Investment funds that trade and are priced on global stock exchanges wherein investors have an undivided interest in the pool of securities and other asset classes within said fund.
Expression of Interest Form: The form that provides prospective ABX Members the ability to express their interest in the ABX service offering.
Financial Services Legislation: All specific legislation and rules pertaining to the regulation of the Australian financial services industry.
Firm: A Broker Member who is trading in a proprietary capacity upon the Exchange.
Floor Member: The esteemed Broker Members of the Exchange. Floor Membership includes a proprietary interest in a seat on the Exchange, discounted Exchange fees, Broker Trading Rights, Clearing Rights, Market Making Rights and the ability to sponsor prospective Associate Members and Proprietary Trading Members.
Good Business Day: Weekdays (Monday to Friday) on which banks are open in New South Wales (‘NSW’), Australia excluding NSW public holidays.
Holder Identification Number (HIN): The identifying number utilised by the Exchange and Members for trade and reporting functionality as facilitated by the TMS.
Industry Member: All approved third-parties involved in the day-to-day operations of the ABX. Industry Members hold ABX Operational Rights.
Inspectorate: A global leader in commodity inspection and testing. Inspectorate plays a large role in the ABX Quality Assurance Program by providing inspection, supervision, testing, verification and audit services.
LBMA: The London Bullion Market Association. The LBMA is the London-based trade association that represents the wholesale over-the-counter market for gold and silver in London. The ongoing work of the Association encompasses many areas, among them refining standards, good trading practices and standard documentation.
Lloyds of London: Lloyd’s is the world’s leading specialist insurance market, which offers an unrivalled concentration of specialist underwriting expertise and talent.
Market Makers: A Member that maintains a firm bid and ask price in a given Exchange Contract by standing ready, willing, and able to buy or sell at publicly quoted prices (called making a market). These firms display bid and offer prices for specific numbers of Exchange Contracts, and if these prices are met, they will immediately buy for or sell from their own accounts. Market makers are very important for maintaining liquidity and efficiency for the particular securities that they make markets in. At most firms, there is a strict separation of the market-making side and the brokerage side, since otherwise there might be an incentive for brokers to make recommendations simply because the firm makes a market in that Exchange Contract.
Market Making Rights: Rights granted to ABX Members to provide market liquidity and set bid and ask prices in the ABX.
Member: An approved direct participant of the ABX listed on the official ABX Member list.
Membership Agreement: The agreement executed between the ABX and its Member organisations.
Member Login: The online web portal resource database, for utilisation by the ABX Members, located on the ABX website.
Operational Members: Members whom hold Operational Rights in the Exchange allowing them to be contracted by ABX for day-to-day operations. Operational Membership is sub-divided into Industry Members and Research Members.
Operational Rights: The rights granted to Operating Members of the ABX. These rights permit third-parties to be contracted for day-to-day operations in the Exchange.
Over-the-Counter (OTC): A market or exchange where trading of assets is conducted directly between two counterparties.
Quality Assurance Framework: The framework, rules, protocols and procedures developed by the Exchange to provide the highest levels of assured quality and transparency to all Exchange stakeholders and their respective stakeholders.
Quality Assurance Program: The procedures and policies implemented to achieve the objectives of the Quality Assurance Framework.
Research Member: An ABX Member granted the right to utilise the Exchange as a channel of distribution to publish their research and analysis.
Rulebook: Official ABX documentation that details the rules of operation, the obligations and undertakings of the Exchange and all Members. This book is provided in hardcopy and only available to Members of the Exchange.
Sponsoring Member: A Floor or Clearing Member who has elected to sponsor an Associate Member or Proprietary Trading Member.
Sponsored Member: An Associate Member or Proprietary Trading Member who has been sponsored by a Floor or Clearing Member.
Storage Fee: A management fee charged by the Exchange for the administration and facilitation of storage for a Member's bullion in an Approved Vault.
Telephone Trading: The facilitation of Member trade by ABX Floor Traders on the Exchange by means of telephone and email correspondence.
Trading Cycle: A trading cycle that spans a period of time between the 15th of one month to the 15th of the following calendar month. All trades falling within this period that require physical delivery of bullion either to an ABX Approved Vault or to a Member’s nominated address, must be delivered by the Delivery Date following the completion of a Trading Cycle.
Trading Day: A session of trading on a Business Day commencing at ten-hundred hours (1000) until and including close at sixteen-hundred hours (1600) AEST.
Trade Management System (TMS): The integrated trading system facilitating the management of individual holdings, trade activity, contract and reporting functionality housed within the ABXconnect platform.
Trading Members: Large trading organisations involved in large volume bullion trading and/or management, approved as Members on ABX.
Trading Night: A session of trading after a Trading Day from sixteen-hundred hours (1600) until and including seven-hundred hours (0700) AEST.
Trading Rights: Rights granted to Members permitting them to trade on the Exchange.
Unallocated Storage Account: An unallocated bullion custodial storage service facilitated by the Exchange and provided by Members. Unallocated Storage Accounts do not facilitate legal ownership of bullion in specific bars or coins. An unallocated account represents a Firm’s
or Client’s right to the credit balance of bullion on account wherein they are an unsecured creditor of the Member facilitating the Unallocated Storage Account.
Value Date: The date agreed between parties for the settlement of a transaction.
Vault Operator: A representative of an Approved Vault of the ABX.
Withdrawal Fee: a fee charged by the Exchange for the removal of a Member’s bullion from an Approved Vault.
