Commodity Options
Trading resumes at MCX after more than 4-hr outage due to technical glitch
MCX attributed the halt to a 'technical issue' and announced that trading would begin from its Disaster Recovery (DR) site, though it did not provide full details of the fault.
 "Trading resumes at MCX after more than 4-hr outage due to technical glitch")
Commodity ETF flows surge as gold and silver catch investors' fancy
Gold and silver ETFs see record inflows of ₹4,085 crore in June, driven by rising investor interest in precious metals amid global uncertainties and growing ETF acceptance for investment
 "Commodity ETF flows surge as gold and silver catch investors' fancy")
Silver trade: Buying on dips still favourable, may continue to rise
Slightly softer than expected inflation data from University of Michigan, which was released Friday, continued to aid in commodities recovery
 "Silver trade: Buying on dips still favourable, may continue to rise")
Silver in uptrend as US yields dip, may hit Rs 85,000-mark on MCX
Silver outlook by Sharekhan: The recovery in Silver prices has been driven largely by increasing probability of rate cuts by the US Federal Reserve
Rising commodity prices risk raising costs for India's infra plans
Commodity super-cycle may upset plans for national infrastructure pipeline, raise expenses for Railways
 "Rising commodity prices risk raising costs for India's infra plans")
Settlement rules on commodity options soon
The securities and exchange board of India has today approved trading in commodity options. While actual trading in options will take some time to start as first finance ministry will have to amend the relevant rules which can be done by issuing a notification and the regulator board has found way out which will not require to go to parliament. The existing SCR act gives all powers to the Sebi to permit options. However options settlement will be much more complex than equity options because in commodities, ''options will devolve or expire in futures.''Expiry of option, as the Chairman, Ajy Tyagi stated, "options will be in futures of the same commodity and not cash settlement like in equities." However as he said the details for this are being worked out but according to sources, once an option expires in futures relevant margins applicable to futures will also apply to options. On expiry if buyer of the option decides to continue his position, he will have to pay standard margins ...
 "Settlement rules on commodity options soon")
Sebi to finalise norms for options in commodities soon
However, regulator is treating issue with caution; experts suggest letting banks act as aggregators
 "Sebi to finalise norms for options in commodities soon")
