INSUBCONTINENT EXCLUSIVE:
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
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 24, 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
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).
