BSE completes physical delivery in gold mini ‘options in goods’ contract

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Published: June 30, 2020 11:15 PM

He further said delivery based on the options in goods framework will help further integrate physical and derivatives markets, and bring in more transparency, liquidity and ease of trade for buyers-sellers alike.

He further said delivery based on the options in goods framework will help further integrate physical and derivatives markets, and bring in more transparency, liquidity and ease of trade for buyers-sellers alike.He further said delivery based on the options in goods framework will help further integrate physical and derivatives markets, and bring in more transparency, liquidity and ease of trade for buyers-sellers alike.

Leading stock exchange BSE on Tuesday said it has executed maiden delivery of gold mini on ‘options in goods’ contract. The delivery was produced by a Delhi-based member, while the counterparty buyer was from Punjab, the exchange said in a statement.

The physical delivery was successfully completed at the exchange designated vault in Ahmedabad, Gujarat.
“Seamless and integrated delivery via the exchange mechanism is extremely beneficial for small and mid-level jewellers and bullion dealers, who can not only hedge their price risk but also avail delivery on expiry of the contract,” said Sameer Patil, Chief Business Officer at BSE.

He further said delivery based on the options in goods framework will help further integrate physical and derivatives markets, and bring in more transparency, liquidity and ease of trade for buyers-sellers alike.

BSE launched the first ‘options in goods’ contracts on gold mini and silver kg based on spot prices from June 1, 2020. These contract are converted into physical delivery on expiry. The gold mini options trading unit on BSE is 100 grams.

The exchange said it has received extremely positive response from all stakeholders for these contracts, and is the market leader in the bullion options segment. In about a month since launch, BSE has surpassed the cumulative turnover of all exchanges from bullion “options” contracts. It has registered the highest turnover of Rs 2,442 crore in ‘options in goods’ contracts.

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