Expanding Access to Physical GoldBy Martin Huxley, Managing Director, INTL FCStone
Published on March 9, 2017
As investors continue to flock to safe haven assets, investments in gold must be made more convenient and accessible. The launch of the PMXecute+ trading platform by INTL FCStone’s precious metals division, aims to do just that by connecting consumers and suppliers of physical gold with seamless, real-time access to the global bullion market.
The wholesale bullion markets have been slow to embrace technology. For decades, the buying and selling of gold has been long-winded and manual, with market players relying on a combination of email, telephone and chat rooms to do their trades. All this takes time and effort, and is not ideal when operating a global business across several time zones.
PMXecute+ provides customers with free, direct and real-time access to INTL FCStone’s inventory across the world, as well as all products offered through its global network of supply partners. It automates INTL FCStone’s interaction with our customers, improving market access and efficiency. It allows customers access to INTL’s entire global inventory and network of trusted supply partners – helping customers find the best offers in the Asian market and globally, 24 hours a day, seven days a week. Customers who do not see offers meeting their specific requirements (regarding quantity, specification or location) can use the platform’s Request for Quote function, which notifies all relevant suppliers around the world. Suppliers can create firm or indicative offers (premium, location, expiry date) on the platform for all customers to view and, if they like what they see, trade on. Thus seamlessly securing gold at a premium, in a location, they want. The platform even allows for shipping to be added, if the customer requires.
To use the platform, the only KYC/onboarding required is between the customer and INTL, given that INTL will be principal to all transactions booked on the platform and will continue to be the trusted counterparty. The automated workflow and full audit trail creates efficient execution – including optimising freight cost and time.
The Asian market for gold is huge, and providing more transparent access to the market has the potential to change the landscape of trading, particularly the way we hold assets, make transfers and payments. Bringing gold trading online is only the first step.