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

MCX gets Sebi nod for launching options contract in gold

Exchanges have been demanding for long that options trading in commodities be allowed

Press Trust of India  |  Mumbai 

MCX gets Sebi nod for launching options contract in gold

The (MCX) on Wednesday said it has received regulator Securities and Exchange Board of India's (Sebi) approval to launch the country's first soon.

"We have received the approval to launch options on futures in gold contract from We have already commenced mock trading and conducting bullion participant awareness events. In the next couple of weeks, we will finalise exact contract specifications and launch date," spokesperson Girish Dev said in Mumbai.

In June this year, allowed options trading in commodities to deepen the market but permitted each exchange to launch options on futures of only one commodity initially.

Putting in place strict eligibility criteria, said options could be launched on futures contract of only those commodities that are among the top five in terms of the total trading turnover value of previous 12 months.

Besides, the average daily turnover of underlying futures contracts of such a commodity in past one year should be at least Rs 200 crore for agricultural and agri-processed commodities, and Rs 1,000 crore for other commodities.

In line with the guidelines for launching options on futures of only one commodity initially, we chose gold contract options, Dev said.

Exchanges have been demanding for long that options trading in commodities be allowed. While had agreed to permit options trading last year itself, some legal requirements were holding back the move.

had also stipulated necessary guidelines with regard to the product design and risk management framework to be adopted for trading in options on commodity futures.

First Published: Wed, August 09 2017. 23:41 IST
RECOMMENDED FOR YOU