MCX to launch two innovative contracts

The Multi Commodity Exchange (MCX) will launch two innovative contracts — Silver 1000 and cotton seed oil cake or Kapasia Khalli (as it is popularly known) — from tomorrow.

Silver 1000 is a deliverable 1-kg silver contract. New Delhi, one of the largest consumers of silver in India, will be the base delivery centre for this contract. Silver 1000 is expected to cater to the needs of small jewellers and retail investors who wish to take physical delivery of a 1-kg silver bar in demat or physical form.

“Silver 1000 will meet the needs of physical market participants and retail investors. It will enable them to take delivery of 1-kg silver bar at lower margins, compared to the hitherto 30-kg bars,” said Shreekant Javalgekar, MD & CEO, MCX.

 

Kapasia Khalli is the by-product, which remains after oil from cotton seed. It is primarily used as cattle feed. The trading unit of the Kapasia Khalli contract is 10 million tonnes and its tick size is 50 paise per 100 kg (inclusive of sales tax/VAT).

“The Kapasia Khalli contract with a tick size of 50 paise will ensure better liquidity,” said Javalgekar.