After months of testing and build-out, the Allocated Bullion Exchange finally went "live" back on Wednesday. What is this new exchange and why does it pose such a direct threat to the current, fractional reserve LBMA system? For answers, we sought out CEO Tom Coughlin and our old friend and ABX Advisory Board member, Andrew Maguire.
After years of development, the Allocated Bullion Exchange is now fully operational. Here's a link to their site: https://abx.com
In these back-to-back interviews, Tom and Andy address many of the questions you may have regarding the new exchange. They explain how the exchange functions for retail and institutional investors and they also detail why ABX is such a threat to the Bullion Bank status quo. Among the topics covered:
- How will this exchange differ from the existing LBMA structure?
- The ability of the exchange to provide a disruptive technology that allows users to entirely circumvent the LBMA.
- In stark contrast to the LBMA, the anonymity that this new exchange gives market participants, thereby eliminating the possibility of bullion bank front-running of orders.
- The global network of vaulting and settlement facilities, in place from day one, which allow the exchange to function on a 100%, fully allocated framework and gives users the ability to buy and sell at spot prices around the globe.
As you know, 2016 is shaping up to be the "year of consequence" that we predicted it would be. The timely emergence of the ABX, which gives producers and consumers alike an opportunity to interact outside of the existing LBMA system, only adds to the dynamic. We wish Tom, Andy and everyone else associated with ABX all the best in their efforts to offer the investment world a much more free and fair platform for buying and selling physical metal.