bitcoinBull,

I see your point. I would agree that the reputation and integrity of the exchange will need to develop and prove itself over time. I am committed to make this exchange a success along with the Bitcoin currency! The current system is corrupt and free markets no longer exist. I'm attempting to play my part in changing this!
Time will tell...

Regarding physical delivery, many systems in place today provide only cash settlements. I know in that I have experienced difficulty taking physical delivery on Gold and Silver futures. Some items traded can only be settled for cash i.e., Electricity, Uranium, Weather, etc. My thinking is that the majority of contracts that trade on the Bitcoin Exchange will be cash settlement since physical delivery poses risks to anonymity. However, I am looking at providing the option for traders to take physical delivery on some of the contracts traded on the Bitcoin Exchange. Physical delivery will involve additional costs (to cover the cost of shipping and handling). The first contract that will offer physical delivery will be the CU copper contract. I'm still working out the details, but if you trade that contract and elect to take physical delivery, you will be able to take delivery of pure copper.

Max Koda