MCX to launch crude oil, metals options; conjointly gets nod for diamond futures

MCX to launch crude oil, metals options; conjointly gets nod for diamond futures

Multi commodities market (MCX) got permission, late last week, to launch choices mercantilism in rock oil, silver, copper and metallic element. The exchange proclaimed on Monday that rock oil (100 barrels) possibility and mercantilism can begin from might fifteen and expire on June fifteen.

This follows its recent launch of choices contracts in gold. then with success took off, the Securities and Exchange Board of Bharat (Sebi) has allowed MCX, the country’s largest in commodities, to try and do thus in metallic element (5 tonnes), silver (30 kg) and copper (1 tonne), except rock oil. The launch date of metallic element, silver and copper are declared later however the exchange has proclaimed contract specifications of all new contracts.

The regulator has conjointly allowable MCX to launch futures contracts in diamonds. At present, these area unit happening solely on the Indian commodities market. MCX has signed AN agreement for a tie-up with the Singapore Diamond Investment Exchange, the world’s 1st commodities market in physically settled diamonds for traders and authorized investors.

Sources aforesaid MCX would look ahead to a while before launching diamond contracts. “At gift, our priority is to expand the basket of choices mercantilism,” aforesaid an officer of the exchange, WHO didn't would like to be named.

MCX gold choices had a slow begin when a launch simply previous Diwali. However, in recent weeks, when Sebi allowed it to supply liquidity support for illiquid contracts, the volumes have picked up. One reason for the initial slow is that Indian trade goods choices devolve in futures on end. So, those holding on choices until the tip, typically sellers, ought to move to futures unless these area unit square off.

MCX’s liquidity improvement theme is at the start for 6 months. Sebi allowable it in end-March and MCX introduced it from Apr twenty four. when liquidity support was provided, the MCX gold choices volume has reached a daily average of Rs3,787 billion; Open Interest (contracts not square at the tip of trading) is additionally rising.

“More vital,” aforesaid AN MCX official, “after implementation of the liquidity theme, the bid-ask spreads have conjointly narrowed and area unit currently terribly tight.” MCX has earmarked Rs half-dozen million a month to be spent for the liquidity theme.

Mrugank Paranjape, the exchange’s decision maker, aforesaid at AN analysts’ decision last Monday that they might specialize in creating contracts deliverable and additional accessible. Brass futures were launched a couple of months earlier, the primary within the world. Sources say the exchange is functioning on launch of nickel futures because the next beneath this series. Paranjape had conjointly aforesaid the exchange had determined to specialize in company hedging to extend business. therein phase, MMTC has considerably expanded deliveries on the exchange.

Vardhaman Textiles and a few others have started actively taking part in cotton contracts, says a report on MCX by workplace wild flower.

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