The Australian Securities Exchange (ASX) and Perth Mint have announced a collaboration to distribute new precious metals derivatives to the international market, maximising export income from Australia’s gold production.
The joint venture will enable the ASX to grow its suite of commodities products and services, meeting the growing demands of its customers in Australia and Asia for investment and risk management products.
The Perth Mint currently produces over $15 billion worth of gold and silver annually, and will develop new precious metals derivatives products that will be quoted and traded on the ASX.
The ASX will offer its 24-hour, globally connected network to distribute the new products to the global market, while the mint will provide physical precious metals and its world-class secure storage facilities.
Perth Mint chief executive Richard Hayes said the organisation had established an international reputation for excellence in precious metals, developing a deep and long-standing relationship with physical traders and importers across Asia.
“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,” Hayes said.
ASX deputy chief executive Peter Hiom said the collaboration between the ASX and the mint was the perfect fit for both companies and their 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 participants and investors, and other market participants in the Asian region,” Hiom said.
The first product is expected to be launched in the second half of 2016.''