Page 17 - Bullion World Volume 3 Issue 2 February 2023
P. 17

Bullion World | Volume 3 | Issue 2 | February 2023


           MCX bullion contracts witness the participation of bullion importers, traders
           and jewelers for hedging, as well as delivery. This is seeing a broader     MCX bullion
           increase by way of small and medium jewellers from across cities and towns   contracts witness
           of India becoming part of the Exchange eco-system.                      the participation of
                                                                                    bullion importers,
           The turnover of bullion futures contract during CY-2022 was about 27 lakh   traders and
           crore. The turnover of bullion options contract in the CY 2022 of 4.15 lakh   jewelers for
           crore had seen significant increase of around 200% as compared to last   hedging, as well
           year turnover of 2 lakh crore.
                                                                                   as delivery. This is
                                                                                    seeing a broader
           After receiving overwhelming response for Gold 1kg and Silver 30kg
           options contract, we received requests from jewelers to introduce smaller   increase by way of
           denomination options. MCX launched Silver Mini Options contract with    small and medium
           Silver Mini Futures as underlying on July 19, 2021 and Gold Mini Options   jewellers from
           contract with Gold Mini (100 Grams) Futures as the underlying on April 25,   across cities and
           2022. Characterized by expiries in every month, smaller denominations, and   towns of India
           therefore, carrying lower premiums, which would enable small and medium-  becoming part of
           sized jewelers to hedge their bullion price risk.                       the Exchange eco-
                                                                                          system.
           The volume of Gold all variants and Silver all variants for futures and options
           contract during the year 2022 is as table 1 below:
                                                                                  registered it’s highest Open
           Table 1:
                                                                                  Interest  of 5917 lots on
                  Volume-Gold  Volume-Silver  Volume-Gold  Volume-Silver          November 18, 2022
                       Futures         Futures       Options        Options    •   Silver Options (30 kg) registered
           Month
                      (In Metric     (In Metric    (In Metric      (In Metric     a turnover of Rs. 1619 Crores
                       Tonnes)        Tonnes)        Tonnes)        Tonnes)
                                                                                  and volume of 262 MT hitting
           Jan-22          162          16,002            35             431      all time high On November 23,
           Feb-22          182          16,635            28             836      2022 and registered it’s highest
                                                                                  Open Interest  of 196 MT on
           Mar-22          275          18,339           107             310
                                                                                  November 18, 2022
           Apr-22          155          14,969            27             652   •   Silver Mini (5 kg) Options

           May-            196          17,547            71             368      with Silver Mini Futures as
           22                                                                     underlying registered it’s highest
                                                                                  turnover and Volume of Rs.200
           Jun-22          183          23,626            23             899
                                                                                  crore and 33 MT respectively
           Jul-22          194          20,584            63             637      on November 4, 2022 and
           Aug-22          160          22,006            28           1568       registered its highest Open
                                                                                  Interest of 28 MT on November
           Sep-22          227          25,941            77             804
                                                                                  14, 2022.
           Oct-22          195          24,045            39           1372
           Nov-22          201          28,640           103           3338    BULLION DELIVERIES: SHOWS
                                                                               ACCEPTANCE OF PRICE BY
           Dec-22          140         22,708             53           1064
                                                                               PHYSICAL INDUSTRY:

           KEY MILESTONES ON BULLION OPTIONS CONTRACTS DURING CY               All Gold contracts are “Compulsory
           2022:                                                               Delivery” contracts and settled
                                                                               based on Indian polled prices.
           •   Gold Options with Gold (1 Kg) Futures as underlying registered it’s   Deliveries of 132 MT of Gold & and
              highest turnover (post LES) of Rs. 4638 crore on May 24, 2022.   over 4362 MT of Silver have taken
           •   Gold Mini Options with Gold (100 gram) Futures as underlying registered   place on MCX since inception.
              it’s highest turnover of Rs. 540 crore on December 27, 2022 and





                                                                                                          17
   12   13   14   15   16   17   18   19   20   21   22