India International Exchange, a subsidiary of the BSE, launches Gold Quanto and Silver Quanto futures on August 31, i.e. Monday. The underlying of Gold Quanto futures is Indian Gold spot purity 995 and that of Silver Quanto futures is Indian Silver spot purity 999. Both, Gold Quanto and Silver Quanto futures contracts will be settled in cash in US dollars.
The Gold Quanto and Silver Quanto futures will attract market participants looking for exposure to foreign commodities, minus exchange rate risks, V Balasubramaniam, Managing Director, India INX, said last week.
"Trading in these Quanto futures contracts at India INX will commence from Monday, August 31, 2020," India INX had said in a press release. The contracts will be traded from Monday to Friday, between 4.30 am and 5 pm (session 1), and 5 pm to 2.30 am (Session 2), the release had added.
The gold price will be quoted on a per 10 grams basis and silver price will be quoted per kg.
"The available contracts for both Quanto futures contracts is twelve serial monthly contracts. Both Quanto futures contracts will be settled in cash in US Dollar," the release had added.
Gold and silver futures are individually traded on the Multi Commodity Exchange (MCX). On August 24, MCX launched Bulldex, the country's first bullion index, having gold and silver as underlying.
India International Exchange is India's first international stock exchange. It is located at the International Financial Services Centre, GIFT City in Gujarat.