The Exchange will revise its delivery rules to increase the number of parties eligible to issue warehouse receipts for precious metals. This is part of Exchange efforts to upgrade the delivery system for precious metals. The outline and schedule of the revisions are as follows:
(1) Outline of Revisions
Article 12 of the Precious Metals Delivery Detailed Rules (Delivery of Precious Metal Bars by Designated Persons) prescribes “cases where a person designated by the Exchange may furnish precious metal bars to be offered for delivery directly to an approved warehouse”. This will be revised to allow Commercials and Broker Members who meet requirements mandated by the Exchange and are approved by the Exchange to perform the said action.
Under the new system, those who wish to furnish precious metal bars directly to an approved warehouse and to issue warehouse receipt will be required to follow these procedures:
・ A Commercial entity and a Broker Member who wish to issue a warehouse receipt shall jointly sign an application and submit it to the Exchange to receive approval.
・ After obtaining Exchange approval, the two parties shall follow the prescribed procedure. Thereafter, on behalf of an Approved Commercial, an Approved Broker Member shall issue as the Original Depositor a warehouse receipt for precious metal bars. These are bars the Approved Commercial has obtained directly from the manufacturer of a brand designated by the Exchange that have not passed through the hands of a third party.
(2) Timing for Implementing Revision
Revisions to the rules and procedures will come into force starting with the April 2015 contract (except in cases of Early Delivery within March 2015).
(3) Rules and Procedure to be revised
Precious Metals Delivery Detailed Rules
