Physical Metals Custody
TM2 has entered into safeguarding and administration arrangements with accredited and independent sub-custodians suitable for Issuers and each listed technology metals product. Custodians are responsible for safekeeping and administering physical technology metals and hold the title information for each ultimate beneficiary owner on TM2’s synchronised distributed ledger technology and are the immutable last line providers of security and title assurance.
Member’s metals are segregated and separately identified.
Reconciled and audited inventory positions are available at any time. End-of-Day (“EOD”) files provided daily.
Safeguarding and Administration Fee
- All Members pay a safeguarding and administration fee.
- The fee is calculated daily and is a [basis point] percentage charge of the number and amount of technology metals inventory currently in a Member’s custody wallet.
- Fees per different traded technology metal may vary.
- Every month, the Member is notified about the payment of the safeguarding and administration fees.
- Member has 10 days to pay the fee.
- If a Member does not pay the fee within 10 days, TM2 suspends their access to the platform.
- Safeguarding and administration fee details can be found on the tm2.market.
Technology metals held in custody are fully insured against theft and destruction.
TM2’s statutory auditor undertakes physical audits of all TM2 technology metals positions on a quarterly basis. Digital to physical metals positions are verified and published on the TM2 website every day.
Protection of Member’s Metals
TM2 acts as the Member’s agent and bailee with respect to the safeguarding and administration of the physical technology metals underlying any of the traded technology metals a Member holds. All technology metals are recorded in a Member’s custody account are fully reserved and redeemable pursuant to the law of bailment and TM2 rules.
Protection of Member’s Funds
For trading purposes, TM2 Member’s cash balances are kept in segregated accounts. Balances can be used to purchase metals or can be withdrawn and returned by bank wire transfer according to TM2‘s Withdrawal Policy and TM2 Rules. TM2’s Swiss licensed payment services provider is MOGLI, an e-wallet service owned and operated by 3ATex GmbH. 3ATex’s main custodian for cash deposits is Zurich Cantonal Bank (ZKB). ZKB is the fourth largest bank in Switzerland and is wholly owned by the Canton of Zurich who, under Swiss law, guarantees all of ZKB's liabilities should ZKB default.