Core Risk Philosophy
Early Pay-in Based Risk Management
The primary risk control mechanism in Spot Contracts is:
Early Pay-in of BDRs and Funds
Participants fulfil settlement obligations upfront before orders are permitted into the market. This approach reduces counterparty exposure and supports efficient settlement completion.
T+0 Spot Contracts
Seller Risk Controls
Sellers are required to make: 100% advance pay-in of BDRs before placing sell orders. This ensures full availability of underlying bullion.
Buyer Risk Controls
Buyers are required to make: 100% advance pay-in of funds before placing buy orders. This ensures immediate settlement readiness.
T+2 Spot Contracts
Seller Risk Controls
Sellers are required to make: 100% advance pay-in of BDRs before placing sell orders.
Buyer Risk Controls
Buyers are required to make: advance pay-in of funds in accordance with the percentage prescribed under contract specifications. This structure balances settlement assurance with participant flexibility.
Spot Market Risk Controls
The Spot framework includes:
• Advance Pay-in Controls
• Settlement Monitoring
• Exposure Controls
• Eligibility Validation
• Operational Risk Monitoring
Spot Risk Objectives
• Minimize settlement failures
• Reduce counterparty exposure
• Support settlement certainty
• Enable efficient market operations