The owner of the certificate can sell the certificate before the expiry date. The buyer of this certificate has the claim of precious metal value at the time of expiry. The rates for the trading of certificates are determined on the market conditions. The buyer of the certificate can sell this certificate or wait for the expiry to get the amount of precious metal shown in the certificate.
Orders of certificates in different maturities are traded according to price and time priority. While the best bid is the one with the lowest rate, the best offer is the one with the highest rate. The best orders have the price priority. The certificates are traded at the current value for the amount of precious metals stated in the certificate.
Session is non-stop between 09:45 a.m. and 17:30 p.m.
The certificate must at least include followings:
The Size of the Certificate: The certificates show the value or quantity of the precious metals at the time of expiry.
Maturity: The expiry date should be notified in the certificate.
Type of Delivery: It must be stated in the certificate that the delivery will be physical or cash settlement at the time of expiry.
Kind of Precious Metal: The underlying precious metal must also be notified in the certificate.
These are the following requirements which must be involved in the certificate trading orders:
- The name of the member which submits order
- The type of the order (buying or selling of certificate)
- The price or value of the order
- The serial number of certificate
- The price type
The clearing of the certificate transactions on the market is carried out by the Precious Metals and Diamond Markets Department and the Clearing Bank. The clearing date for the executed certificate trades is the next day.
The delivery of the precious metals or cash settlement has been fulfilled on the expiry date. The owner of the certificate has the right to get the pre-determined amount or value of the precious metal on the expiry date. The borrower must bring the pre-determined amount to the Exchange vault or he must pay the pre-determined amount to the Clearing Bank.