Custody Participant is one of nine Exchange participant classes.
The Exchange refers to this class as GX-CU. It sits in the Custody & Assurance group and carries the obligations set out below in addition to the requirements common to every participant.
Admission test: Vault accreditation at each site, continuous chain-of-custody attestation, insurance to full replacement value, and unannounced inspection rights for Exchange assurance staff.
Exchange Designation
Class Group
Public Register Entry
Rule Change Notice
Obligations of the Class
What it does
Custody Participants hold deliverable material at accredited sites near the point of origin, so that custody does not have to leave the corridor for the market to trust it.
Continuous attestation
Holdings are attested continuously rather than reconciled monthly. Every movement in or out of an accredited vault produces a record the clearing house can check against open delivery obligations.
Distribution requirement
No single site may hold more than a set share of a corridor's deliverable stock. Concentration is a risk to the market and is managed as one.
Release authority
Material is released only against a clearing house delivery instruction. A Custody Participant may not act on a member's instruction alone, whatever the commercial urgency.
Standing
Published
Admission, restriction, suspension and withdrawal for this class are published on the participant register with the effective date and the rulebook section relied on.
Reviewed annually
Standing is reviewed every year against the admission test, and at any time on a material change in the participant's circumstances.
Appealable
Adverse decisions may be referred to the Exchange review panel, which sits independently of the desk that made the original determination.
