First Bank To Become a Trading Cum Clearing (TCM) Member:
State Bank of India (SBI) announced that it has become the first bank to become a Trading cum Clearing (TCM) Member at India International Bullion Exchange (IIBX).
- It enables SBI’s IFSC Banking Unit (IBU) to trade on the IIBX platform as the RBI allowed IBUs to act as trading members and clearing members at IIBX as Special Category Clients (SCCs) for importing gold through the bullion exchange.
- This move is expected to increase trading volumes for gold and silver at the IIBX, bringing transparency and efficiency to India’s Bullion Market.
- IIBX regulated by the International Financial Services Centers Authority (IFSCA) is India’s first bullion exchange established in GIFT -City IFSC.
- A bullion market is where traders trade in precious metals like gold and silver, with exchanges taking place directly between buyers and sellers and in the futures market (auction market).
- The versatile uses of silver and gold, especially in industrial applications, influence their prices. Bullions are considered a safe bet against inflation and a haven for investment.
- TCM is a member who can trade on their own account and on behalf of their clients, and also clear and settle trades executed by themselves and other trading members who opt to use their clearing services.
