You are here: Home » Markets » Commodities » commodity gold
Business Standard

Jaitley launches MCX gold options, says move will help formalise trade

This is the first product for options trading that the regulator Sebi has allowed after 14 years of commencement of commodity exchanges in the country

Press Trust of India  |  New Delhi 

JAitley, Finance Minister, Arun Jaitley
FM Jaitley strikes the gong at launch of commodity options in gold futures in New Delhi. Finance Secretary Ashok Lavasa , Chairman of EAC to PM, Bibek Debroy, MCX MD & CEO Mrugank Paranjape & MCX Chairman Saurabh Chandra are also seen. Photo: PTI

Finance Minister on Tuesday launched gold options trading on the leading commodity bourse MCX and said this is one of the steps towards formalising trade in the yellow metal.

Options are which give a buyer the right but not the obligation to buy or sell an underlying asset or instrument at a specific price on or before a certain date.


"This marks a very important evolution in trading of yellow metal itself. It hedges all risks by giving them (traders) the option of futures," Jaitley said after launching the options trade on the auspicious day of Dhanteras.



Indians are great buyers of gold. This new product will be extremely successful, he said.

Emphasising that the government is taking efforts to formalise gold trade, Jaitley said, "I am sure more it formalises, better it is for consumers, jewellers and those trading in this. That's in consonance with the business environment for future that we see for us".



This is the first product for options trading that the regulator Sebi has allowed after 14 years of commencement of commodity exchanges in the country, he added.

The gold options contract launched today allows trading in 1kg gold.



Finance Secretary Ashok Lavasa, Economic Advisor to PM Bibek Debroy, MCX Chairman Saurabh Chandra and MCX Managing Director and CEO Mrugank Paranjape were present at the event.

MCX is the leading commodity bourse in the country with a market share of over 90 per cent. It has a large presence in gold, base metals, and energy.

First Published: Wed, October 18 2017. 00:30 IST
RECOMMENDED FOR YOU