IIBX – Indian International Bullion Exchange is inaugurated by the honourable prime minister, Shri Narendra Modi on 29th July 2022. IIBX is India’s first International Bullion Exchange set up at the GIFT City. India is known to be the world leader in terms of the consumption of Gold/Silver commodities. India thus holds an important position globally and has the capacity of deciding bullion prices worldwide. Gold is considered as a sign of prosperity and is one of the major investment options in India.
In India, the Gold/Silver market is still unorganized and hence price control is not possible. This bullion exchange is expected to address this issue and will eliminate market inefficiencies. With this bullion exchange, India will pose as a price setter for the bullion.
Giving shape to the vision of honourable Finance Minister Ms Nirmala Sitharaman in Union Budget 2020, the IIBX exchange is set up at the International Financial Service Center (IFSC) at GIFT City in Gandhinagar, Gujarat.
What is IIBX?
As mentioned above, IIBX is the Indian International Bullion Exchange. This is India’s first international bullion exchange set up in Gandhinagar, Gujarat. The holding company of IIBX is India International Bullion Holding IFSC Limited. Same was created for setting up and operationalizing India International Bullion Exchange, Bullion Clearing Corporation and Bullion Depository in IFSC, GIFT City.
CDSL-IFSC, a foreign depository has been designated as the Bullion Depository for the Bullion Exchange
responsible for managing the Vault Manager.
IIBX’s Products
the IIBX exchange is trading in the spot segment only. Currently, there are 2 products of Gold with different variants available for trading on the exchange. In the coming time, Silver will also be started trading on this platform. The available Gold variants are as below.
- Gold 995
- Gold Mini 999
Contract specifications
| Description | GOLD 995 T+0 |
| Trading Period | Exchange Business Days |
| Trading Session | 9.00 AM to 3.30 PM / 4.30 PM (depending on daylight savings) India time |
| Trading Unit | 1 kg (31.99 troy ounces) |
| Price Quote | U.S. dollars and cents per troy ounce |
| Maximum Order Size | 10 kg |
| Tick Size (Minimum Price Movement) | US$0.10 |
| Margin | 100% |
| Delivery | |
| Settlement Basis | Compulsory in BDR |
| Delivery Unit | 1 kg |
| Settlement | T+0 |
| Settlement Timing | 6.00 PM to 8.00 PM (IST) same day |
| Quality Specifications | 995 purity It should be serially numbered Gold bars supplied by LBMA-approved suppliers or other suppliers as may be approved by IIBX to be submitted along with the supplier’s quality certificate. |
| Delivery Logic | Compulsory in BDR |
| Description | GOLD MINI 999 T+0 |
| Trading Period | Exchange Business Days |
| Trading Session | 9.00 AM to 3.30 PM / 4.30 PM (depending on daylight savings) India time |
| Trading Unit | 100 grams (3.212 troy ounces) |
| Price Quote | U.S. dollars and cents per troy ounce |
| Maximum Order Size | 10 kg |
| Tick Size (Minimum Price Movement) | US$0.10 |
| Margin | 100% |
| Delivery | |
| Settlement Basis | Compulsory in BDR |
| Delivery Unit | 100 grams |
| Settlement | T+0 |
| Settlement Timing | 6.00 PM to 8.00 PM (IST) same day |
| Quality Specifications | 999 purity It should be serially numbered Gold bars supplied by LBMA-approved suppliers or other suppliers as may be approved by IIBX to be submitted along with the supplier’s quality certificate. |
| Delivery Logic | Compulsory in BDR |
IIBX Settlement Schedule
| Sr. No | Particulars | T0 |
|---|---|---|
| 1 | Trading Hours | 09:00 hrs to 15:30 / 16:30 hrs (Depending on daylight savings) IST |
| 2 | Settlement Time | 18:00 hrs to 20:00 hrs (IST) same day |
| 3 | Processing of obligation | 17:30 hrs |
| 4 | Confirmation of Pay-in of fund and securities | 18:00 hrs |
| 5 | Closeout | 19:00 hrs |
| 6 | Interbank Swift Transfer Instruction | 19:30 hrs |
| 7 | Payout of funds and BDR | 20:00 hrs |
The Early Pay in Timing Schedule Would be as follows: –
| EPI | Transaction day -1 |
|---|---|
| T0 | T up to 15:30 hrs |
For example, if the settlement calendar has the values as below
| Financial Year | Settlement Type | Settlement No | From Date | To Date | Funds Pay-in Date | Funds Pay-Out Date | BDR Pay-in Date | BDR Pay-out Date |
| 2021-2022 | T0 | 2122194 | 06-10-2021 | 06-10-2021 | 06-10-2021 | 06-10-2021 | 06-10-2021 | 06-10-2021 |
Then,
- For T0 (settlement number – 2122194 settlement type – T0) Early pay in should be allowed from 06-10-2021 7:00 hrs onwards till 06-10-2021 at 15:30 hrs.
IIBX Trading Software
Salient Features of Trading Application
- Normal and Fast Order Entry
- Single Key to view Market Snap Shot.
- Market Movement
- Customizable Market Watch
- Flexible Risk Management
- Real-Time Margining
- Net Position view with real-time MTM
- User Defined Short Cut keys
- Menu-based and Keyboard based accessibility
- The download of Order and Trades
- Activity Logs for an audit trail for the day
Technical Specifications
| Description | Suggested Configuration of IIBX Front-end trading terminal |
| System Configuration | Intel core 2 duo / i3 or equivalent configuration |
| Memory | 4 GB RAM minimum |
| Network cards | 2 Ethernet ports |
| Free Disk space | 100 GB at least |
| Display Resolution | 1024 X 768 |
| OS | Windows 7\Windows 8.1\ |
| Software | DotNet framework 4.0 or above |
Here is the link to download the trading application.
Before you install and start using the software, there is a testing software which you can download and use to check the compatibility. All details related to the testing of software are available on this link.