The Australian Securities Exchange (ASX) is to develop a series of precious metals derivatives products with The Perth Mint (Gold Corporation) with the first launching in the second half of 2016.
Traded on ASX, these products will be backed by the physical assets stored at The Perth Mint’s dedicated facility.
In a statement, ASX said the products would provide market participants with a transparent and relevant forward price curve to hedge exposures.
Peter Hiom, deputy chief executive officer of ASX, said the Australian Dollar interest rate futures market is the largest in Asia with a notional annual value of over AUD $40 trillion.
He added: “The result [of the deal] 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 region.”
Richard Hayes, chief executive officer of The Perth Mint, said: “In fulfilling one of the key functions to maximise export income from Australia’s gold production, The Perth Mind has established an international reputation for excellence in precious metals and developed deep and longstanding relationships with physical traders and importers across Asia.
“We look forward to working with ASX to develop ETPs that will further broaden distribution channels for Australian gold and support Perth’s role as an international bullion centre.”
Hayes added that ASX’s clearing and settlement infrastructure would give traders and investors certainty.