Page 46 - Bullion World Volume 02 Issue 08 August 2022
P. 46
Bullion World | Volume 2 | Issue 08 | August 2022
MCX- Product diversfication
& successful deliveries sign
of market acceptance
and Gold Petal 1gram futures with one kilogram silver bar as
contract and in Silver we have delivery lot from February 2020
Silver 30kg, Silver Mini 5kg and series, has seen successful delivery
Silver Micro 1kg futures contract of 45,994 kgs. Silver Mini (5 Kg)
backed by delivery. MCX has seen contract that became deliverable
deliveries of 129 MT of Gold & with Silver (five nos. of one
and over 4,212 MT of Silver since kilogram bars) as delivery lot from
inception. June 2020 series, saw successful
delivery of 86,080 kgs.
Smaller denomination contracts
are designed to cater to the These three products have
organized retail investor demand. strengthened the bullion portfolio
Investment in smaller denomination further and successful deliveries
contracts are backed with delivery, are a sign of market acceptance.
providing a systematic investment
plan (SIP) type of flexibility. In volatile situations there is a need
Coins and bars can be held and to hedge via MCX futures and
accumulated in the electronic options contracts to safeguard the
format and physical delivery is profit margins. MCX emerged as
Mr Shivanshu Mehta also available. Every bar and coin an efficient platform for price risk
Head - Bullion, MCX
comes with an individual assaying management for Gold and Silver.
certificate, quality assurance given. The close integration of the MCX
MCX Gold and Silver Prices are Convenience of transaction and futures and physical commodity
the benchmark for value-chain and liquidity of exchange platform are markets in India, reflects the
end-consumers alike: Most Pricing key advantages leading to better attractiveness of the exchange-
is done MCX (+/-). MCX Bullion Cash flow management, margin traded commodity futures market
contracts are designed considering protection and Inventory hedging in India as an efficient platform for
the need of all participant’s namely amid volatile prices. price risk management.
large corporates, Retail jewellers,
importers, investors and end MCX designed one gram Gold MCX also successfully launched
consumers. Petal future contract (first ever Gold 1kg Options contract with
deliverable one gram gold Gold (1 Kg) Futures as underlying
Further, MCX Gold and Silver contract in the world) to cater on October 17, 2017.
prices reflects all four elements: to organized retail investor
USD/INR exchange rate, custom demand, by providing a systematic The advantages of Options are:
duty tariff, international gold investment plan (SIP) type of • Options offer the buyer an
and silver prices along with the flexibility with an electronic Insurance against adverse
domestic premium/discounts. accumulation, saw successful movement, but allow for
Spot-Futures integration was thus delivery of 62 kgs ( 61,954 coins) participation on favorable side
seen via our compulsory delivery since it’s launch in October 2019 till • Maximum Loss to the extent of
contracts. June 2022 contract. Premium paid for Buyer
• Exchange Traded options are
MCX offers Gold 1kg, Gold Mini Similarly, Silver (1kg) Micro free from counter-party risk
100 grams, Gold Guinea 8 gram contract that became deliverable • Futures & Options combination
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