The finance minister Arun Jaitley unveiled the most awaited gold options contract on Multi Commodity Exchange of India at an event in New Delhi on the occasion of Dhanteras. The largest commodity exchange of India, MCX has begun trading in country’s first commodity options contract today with favourite precious metal gold. “We are the great buyers of this product and one of the efforts of the entire system has been consistent through policy formation to formalise this trade also and I’m sure the more it formalises itself the better it is jewellers, better it is who trades in this, better it is for consumers,” Arun Jaitley said at the event.
“It’s a great beginning and I’m sure this venture will be extremely useful and successful as far trade is concerned and entire dealing in the subject is concerned.” Arun Jaitley said.
Earlier last month, MD & CEO of MCX Mrugank M Paranjape said, “We had met almost every participant on the exchange and had probably covered probably covered more than 5000 jewellers in the last 2-3 months as we are ruling out this new instrument.” The exchange has done all the preparations as gold is the best option for the company to begin within options, he added.
“In terms of the next contract we believe that after the first launch, between the market regulator and all of us would like to watch for a couple of months which could be anywhere between 3 to 6 months as SEBI already has the norms for what should be allowed,” Paranjape added. Amongst the six to seven more contracts are there which will qualify for options contract and once SEBI is in position to allow more, the exchange will aim for the next four or five, he added.
He said that the options which currently qualifies are of silver, crude, natural gas, zinc, and some in the agricultural sector. The cotton and CPO (crude palm oil) contract both will qualify and have very-very deep participation and the exchange would definitely look at those as well when it comes to the next round, Paranjape added further.