Give detailed deccription of gold and silver contracts available in IIBX?

 Here’s a comprehensive deep-dive into the gold and silver contracts available on the India International Bullion Exchange (IIBX) located in GIFT City, Gujarat — India’s first IFSC bullion exchange, launched July 29, 2022 

1. 🏛️ Introducing IIBX

Operated by India International Bullion Exchange IFSC Ltd and regulated by the IFSCA, IIBX brings global-grade bullion trading infrastructure to India’s IFSC. A key objective is to enable qualified jewellers and TRQ holders to import, hedge, and settle bullion in a transparent, regulated environment, bypassing traditional consignment and agency models.

2. Gold Contracts

2.1 Gold 995 T+0 Spot (1 kg)

  • Trading Hours: 09:00–21:30 IST on business days 

  • Underlying: Physical gold, min. 995 purity (LBMA-grade serial-numbered bars) 

  • Contract Size: 1 kg; max 100 kg per order 

  • Pricing & Tick: Quoted in USD per troy oz; tick = USD 0.01 

  • Settlement:

    • Delivery in BDR form (Bullion Depository Receipt) — credited directly to client demat

    • Real-time settlements: funds and BDRs cycle through up to four intra-day settlement windows 

    • Margin: 100% upfront — buyer pays cash, seller pays full BDR margin 

2.2 Gold Mini 999 & UAEGD Variants

  • Similar specifications with mini-contracts (100 g, 999 purity) and CEPA-trusted variants (UAE origin), enabling preferential import duty.

2.3 Gold Futures

  • Launch Date: June 21, 2024 

  • Contract Specs: 1 kg unit; eight monthly contracts across 13 months 

  • Margins:

    • Initial margin = 6% or VaR-based (MPOR-adjusted)

    • Extreme Loss Margin (ELM) = +1%

    • Mark-to-Market daily at T+1 

    • Collateral: 50/50 cash (USD)/non-cash (BDRs, SBLCs, FDs) 

  • Expiry & Settlement:

    • Contracts expire last business day.

    • Daily MtM on T+1; final settlement at Spot price from Bloomberg 

    • Option for physical delivery or cash settlement, via BDR intention matching system 

  • Trading Hours: 09:00–23:30 IST 

  • Risk Management: Spread margin benefits (25%), concentration and special margins, and position limits (per member/client) 

  • Delivery Process:

    • Unit = 1 kg BDRs held in IIDI-approved vaults

    • Matching via intention on E–2; funds and BDR settlement on final day

    • Premium/discount, vault, insurance, and transport paid by seller 

    • Default penalties: ~3% + replacement cost; funds distributed to recipients and SGF 

3. Silver Contracts

3.1 Historically Launched T+0 Contracts (Dec 2023)

IIBX’s first batch of silver spot contracts in T+0 format:

  • SILVER Grains, UAEGD SILVER Grains, UAEGDCEPA SILVER Grains, SILVER Bar, UAEGD SILVER Bar 

  • Trading Hours: 09:00–15:30 or 16:30 IST depending on daylight-saving

  • Unit Size: 30 kg (~964.5 troy oz); max 600 kg 

  • Tick Size: USD 0.001 per troy oz 

  • Price: Quoted in USD per troy oz; margin required = 100% 

  • Settlement: Compulsory BDR-based settlement; T+0 cycle ends 18:00–21:00 IST 

  • Quality: 999 purity silver bars/grains; approved LBMA-certified and serial‑numbered 

3.2 Proposed Silver Futures

Pending launch (IFSCA‑approved specs available):

  • Contract Size: 30 kg

  • Tenor & Expiry: Monthly plus Feb/May/… quarterly cycles up to 13 months 

  • Margining: Initial = 10% or VaR, ELM = 1%, plus spread/concentration margins 

  • Price Limits: 3/6/9% daily bands with possible extension per global moves 

  • Settlement: Spot average (XAG‑USD) from Bloomberg over last 5 min 

4. Strategic Benefits 🌍

FeatureBenefit
Global Price DiscoveryUSD-based contracts align with global benchmarks; CEPA‑linked contracts aid duty‑efficient import 
Rapid Settlement30‑minute and T+0 cycles for spot; multiple intra‑day settlement windows for gold
Delivery FlexibilityPhysical or cash settlement via robust intention‑matching, BDRs, and vault ecosystem
Hedging & LiquidityFutures enable global risk management, hedging; spread benefits aid cost structure
Quality & TransparencyLBMA‑standard purity, serial numbers, regulated vaulting, standardized delivery

5. Outlook & Impact

  • Silver futures are next, expanding the ecosystem beyond spot.

  • Market adoption: Initial trading volumes have been modest; only ~24 kg traded in first month, but international participants and vaults are being onboarded .

  • Strategic shift: IIBX can influence import pricing, reduce bullion cost spreads, and integrate physical bullion with financial tools.

✅ Summary

IIBX offers well-structured, USD-denominated gold and silver contracts — including T+0 spot, futures, and CEPA-linked options — with high transparency, rapid settlement, and global-grade physical delivery infrastructure. Margins, vault-backed BDRs, intention-based matching, and disciplined risk frameworks position IIBX as a pivotal hub for bullion trading in India.

If you'd like, I can guide you on specific steps to participate, compare IIBX with other exchanges, or explain the margining, vaulting, or BDR setup in further depth—just let me know!

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