RiddiSiddhi Bullions Ltd. (RSBL), one of India?s largest gold and silver bullion dealers, is all set to start RSBL SPOT (Spot Precious-metals Online Trading) in March 2008.
The e-trading system which will be one of the only few over-the-counter electronic platforms available in the country is already under going final testing and approximately 200 jewellers are currently using a demo-version of the software.
?With RSBL SPOT, we intend to revolutionise the way physical gold and silver is traded in the country. The means of physical trading in the bullion markets which takes place via telephone involves a long and inefficient chain of brokers till the time bullion reaches the retail jeweller or manufacturer -thereby making bullion prices opaque and more expensive,? Prithviraj S Kothari, managing director, RiddiSiddhi Bullions Limited, said.
The platform will provide one single reference price for spot gold/silver across different centres in the country, and is initially expected to reach out to as many as 6,000 jewellers, and manufacturers, across
the country – instantly and continuously.
Amritlal Jain, managing director, Auro Gold (a leading jeweller), who is currently using a demo version of the software, said, ?The trading system provides live two-way quotes along with accounting and margin calculations. And, its additional features of comprehensive charting, with indicators and expert advice for sophisticated traders, market related news and information – including London fixing rates is particularly useful?.
The RSBL SPOT platform will seek to make dealing risk-free, free of disputes and more organised. It is not an exchange, but an efficient replacement of the traditional means of doing business in the physical bullion markets.
This platform will help increase the trading volume on futures exchanges and also lead to efficient prices in Exchange Traded Funds (ETFs), Kothari added.