Gold futures on BSE: Cross-delivery centres may be a challenge, say brokers

The issue facing BSE is not unique to it and applies to all exchanges, but since BSE is launching commodity business with precious metals futures, there is a scope to look at the issue afresh

Even as the BSE has announced its preparedness for the commodity futures play, its brokers have some concerns, especially around delivery of bullion at the centre of choice.

This means, the exchange might offer delivery of the commodity at a centre different from the one chosen by a trader in case the underlying is not available at the centre of choice. Transportation, premiums, discount, value at risk and other costs involved in the changed delivery centre are factored in the actual price payable for sellers. But BSE traders want the exchange to offer delivery of bullion at the centre of