CS Professional · IFSCA - Regulations, Listing and Compliances · India International Bullion Exchange (IIBX)
Himalaya Bullion Traders, an Indian entity, applies to become a trading-cum-clearing member on IIBX. Which fact about the clearing function is correct?
Trades on IIBX are cleared and settled through a recognised clearing corporation, and clearing members are connected to it. Members do not clear privately, and the RBI does not perform this function; settlement relates to bullion held in designated vaults.
- AClearing and settlement of IIBX trades is handled through the recognised clearing corporation, and a clearing member is linked to that clearing corporationCorrect
- BClearing is done by each trading member privately without a clearing corporation
- CClearing is performed only by the RBI in Mumbai
- DClearing is not needed because delivery is always physical at the shop
Explanation
IIBX trades are cleared and settled through a recognised clearing corporation (India International Clearing Corporation), with clearing members connected to it. Private bilateral clearing or RBI clearing is not the model, and settlement is vault-based rather than at a shop.
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