India’s No.1 Commodity exchange,Multi Commodity Exchange of India Ltd.(MCX ) has announced the launch of its unique futures contract ‘GOLD GLOBAL’, which is available for trading from today onwards on the Exchange after the approval from the Forward Markets Commission (FMC).
Gold Global is an international price based contract, exclusive of import premium, customs duty, sales tax/VAT, and domestic market premium among others. ‘Gold Global’ makes the refiners, exporters, jewellers, includes larger bullion physical market participants, involved in import of gold bars and re-export of jewellery happy.The existing Gold futures contracts traded on MCX have been providing an efficient hedging mechanism to the market participants exposed to changes in Gold landed prices, which mirrors the Indian spot market perfectly.
Mr. P. K. Singhal, Joint Managing Director, MCX added “While the existing gold contracts on the Exchange are already an established benchmark of price and quality in the Indian bullion markets, we seized the opportunity to further entrench our position in this market by launching the Gold Global contract. With its launch, MCX’s bullion basket offerings will include one more variant i.e. Gold Global (200 grams) apart from the existing Gold (1 Kg), Gold Mini (100 grams), Gold Guinea (8 grams), and Gold Petal (1 gram), thus enabling us to meet the needs of most stakeholders of the bullion value chain and this contract would facilitate hedging and marching a step towards making India’s gold market more competitive.”
|Contract Start Day||1st day of contract launch month. If 1st day is a holiday then the following working day|
|Last Trading Day||As per the Contract Launch Calendar|
|Session||Monday to Friday : 10.00 a.m. to 11.30 / 11.55 p.m.|
|Trading Unit||200 grams|
|Quotation/Base value||10 Grams|
|Price Quote||Ex-Ahmedabad (exclusive of all taxes relating to import duty, sales tax/VAT/Octroi as the case may be, and other charges/levies)|
|Tick Size||Rs. 1 per 10 grams|
|Initial Margin||Minimum 5% or based on SPAN whichever is higher|
|Margin Benefit||Upto 75% if they trade in spreads between Gold Global and other gold contracts at MCX|
|Quality specification||995 Purity|
|Due Date Rate||The DDR Price will be calculated on the expiry date based on the International price on that day at RBI reference rate.|
|Delivery Logic||Both Option|