NCDEX plans new gold, silver contracts

National Commodity and Derivatives Exchange (NCDEX) Ltd will launch two new contracts - kilogram gold (KG) and mega silver (MS) - contracts from Wednesday. The exchange switched over to T+1 settlement yesterday.

The KG contract will have 1 kg unit of gold for trading and delivery with a tick size of Re 1, in addition to the existing gold contract in which the trading unit is 100 gms and the delivery unit 1 kg.

The MS contract will have 30 kgs unit of trading and delivery with a tick size of Re 1, in addition to the existing silver contract with trading unit of 5 kg and delivery unit of 30 kg.

There will be three concurrent contracts for three months commencing June 2004 for both the commodities.

"These two new contracts have been designed keeping in view the suggestions made by our trading and clearing members who prefer larger contract sizes in bullion. NCDEX would be designing all future contract specifications accordingly and expects traded bullion volumes to increase significantly on account of these two new launches", said Narendra Gupta, chief business officer of NCDEX.

NCDEX switched over completely to T+1 settlement along with new trading hours from today. New trade timings would be from 10am. to 4p.m. and again from 5p.m. to 11.30 p.m.

"All reports and downloads pertaining to the day's trading would be available to members after the end of the trading session. The mark-to-market (MTM) settlement will be done at the end of the day after consolidation of all trades effected on that day", said Meher Baburaj, chief operating officer of NCDEX.