In news– The Prime Minister of India recently launched India International Bullion Exchange (IIBX) and NSE IFSC-SGX Connect in GIFT city in Gujarat.
India International Bullion Exchange (IIBX)-
- It is India’s first International Bullion Exchange in GIFT-IFSC.
- Established with the vision of making India an influencer of the global bullion prices, the IIBX will facilitate efficient price discovery and ensure standardisation, quality assurance and sourcing integrity in addition to providing impetus to financialisation of gold in India.
- Registered jewellers and traders will be able to sell and buy physical gold and silver in the exchange. For this, they will have to become a trading partner or a client of an existing trading member.
- This initiative shall empower India to gain its rightful place in the global bullion market and serve the global value chain with integrity and quality.
- This also reinforces commitment of the Government towards enabling India to influence global gold prices as one of its principal consumers.
- Only the 3rd exchange of its kind in the world, IIBX, with its technology-driven solutions, will facilitate the transition of the Indian bullion market towards a more organised structure by granting Qualified Jewellers a direct access to import gold directly through the exchange mechanism.
Note: Bullion refers to physical gold and silver of high purity that is often kept in the form of bars, ingots, or coins.
NSE IFSC – SGX Connect-
- Under this Connect, all orders for NIFTY(a benchmark Indian stock market index) derivatives placed by members of Singapore Exchange Limited (SGX) will be routed to and matched on the NSE-IFSC(a fully owned subsidiary company of National Stock Exchange of India Limited (NSE)) order matching and trading platform.
- The Connect will deepen liquidity in derivative markets at GIFT-IFSC, bringing in more international participants and creating a positive impact on the financial ecosystem.
- Currently, the average daily volume in NIFTY Futures at SGX is 1.09 lakh contracts valued worth approximately $3.65 billion.
- This volume is expected to move to NSE-IFSC once the Connect is fully implemented, pursuant to a transition period of 4-5 months.
- Broker-Dealers from India and across international jurisdictions are expected to trade derivatives through the Connect in large numbers.