Gold Silver Reports (GSR) – MCX Sees Record Turnover, Volumes in Gold Options — Multi Commodity Exchange of India Ltd (MCX) witnessed a record turnover and volume of Rs 2,021 crore and 6443 kilograms (kg) respectively on Tuesday in gold options contract, according to a release issued by the exchange.
The release added that “This signifies the increasing acceptance of gold options amongst market participants. The physical participants from bullion and jewellery segment were seen using options as a hedging tool in addition to the futures contracts.
The previous record turnover was Rs. 1,560 crore achieved on October 17, 2017—the day the first options contract on gold futures was launched by the exchange. The gold European-style option is based on the underlying MCX gold Futures contract (1 kg).”
With an objective to encourage wider participation by creating lasting and self-sustaining liquidity and depth in the gold options contract, a new hedging instrument, MCX introduced Liquidity Enhancement Scheme (LES), effective from April 2018.
The performance highlights of gold options in the period between April 24 – May 29 show that the open interest (EOD) in gold options touched a record high of 2,553 kg on May 24, 2018. At expiry of May 2018 option series contracts, there were 1,254 kg of open positions, of which 79 kg were exercised and their positions devolved into respective underlying futures positions.
The total notional turnover of options during the above period was Rs 16,251 crore (51,777 kg) with a premium turnover of Rs 89 crore. Average daily volume and open interest during the period were 23.26% and 22.39%, respectively, that of the underlying Gold 1 kg futures contract. The July 2018 contract witnessed open interest of 642 kg on May 29, 2018.
Recently, MCX also launched options trading in Crude Oil (100 bbl), Copper (1 mt) and Silver (30kg).
Multi Commodity Exchange of India Ltd (MCX) (BSE: 534091) is an independent commodity exchange based in India. It was established in 2003 and is based in Mumbai. It is India’s largest commodity derivatives exchange where the clearance and settlements of the exchange happens and the turnover of the exchange for quarter ended December 2017 was 12.82 trillion rupees. MCX offers options trading in gold and futures trading in non-ferrous metals, bullion, energy, and a number of agricultural commodities (mentha oil, cardamom, crude palm oil, cotton and others).
In 2016, MCX was seventh among the global commodity bourses in terms of the number of futures contracts traded, the latest yearly data from Futures Industry Association (FIA) showed. In 2017 MCX partnered with Thomson Reuters to develop India’s first co-branded commodity index series, the iCOMDEX. iCOMDEX series consists of iCOMDEX Composite, iCOMDEX Base Metals, iCOMDEX Bullion, iCOMDEX Gold, iCOMDEX Copper and iCOMDEX Crude Oil. Recently, the exchange has set up a web-based application “ComRIS” (Commodity Receipts Information System) in order to maintain electronic record of commodities deposited at the Exchange accredited warehouses and ensure flow of real time information from the warehouses.
In February 2012, MCX had come out with a public issue of 6,427,378 Equity Shares of Rs. 10 face value in price band of Rs. 860 to Rs. 1032 per equity share to raise around $134 million. It was the first ever IPO by an Indian exchange and made MCX India’s only publicly listed exchange.
From September 28, 2015, MCX is being regulated by the Securities and Exchange Board of India (SEBI). Earlier MCX was regulated by the Forward Markets Commission (FMC), which got merged with the SEBI on September 28, 2015.
Multi-Commodity Exchange appointed of Mrugank Paranjape as MD & CEO of the exchange on February 29, 2016 for a period of three years. Mrugank Paranjape has earlier working with Deutsche Bank for last 14 years. Last he was heading DB Center of the bank.
Commodities traded include –
Metal – Aluminium, Aluminium Mini, Copper, Copper Mini, Lead, Lead Mini, Nickel, Nickel Mini, Zinc, Zinc Mini,Brass(futures)
Bullion – Gold, Gold Mini, Gold Guinea, Gold Petal, Gold Petal ( New Delhi), Gold Global, Silver, Silver Mini, Silver Micro, Silver 1000.
Agro Commodities – Cardamom, Cotton, Crude Palm Oil, Kapas, Mentha Oil, Castorseed, RBD Palmolien, Black Pepper.
Energy – Brent Crude Oil, Crude Oil, Crude Oil Mini, Natural Gas.
Multi Commodity Exchange of India provides live feeds for all traded commodities and these are published on various websites like MoneyControl.com, Economictimes.Indiatimes.com, GoldSilverReports.com, MarketInvestor.in. Neal Bhai Reports (NBR)
Post Updated 06:28 AM
