This Article is From Aug 27, 2020

India INX To Launch Gold, Silver Futures Contracts In Dollars On August 31

The Gold Quanto futures has Indian Gold spot purity 995 as underlying and Silver Quanto futures has Indian Silver spot purity 999 as underlying, and both will be settled in cash in US dollars.

India INX To Launch Gold, Silver Futures Contracts In Dollars On August 31

Trading will take place from Monday to Friday and each trading day will have two sessions.

Highlights

  • Gold Quanto futures will have Indian Gold spot purity 995 as underlying
  • Silver Quanto futures has Indian Silver spot purity 999 as underlying
  • Both Gold and Silver Quanto futures will be settled in cash in US dollars

India International Exchange, a subsidiary of the BSE, has announced the launch of Gold Quanto and Silver Quanto futures from August 31, i.e. Monday. The Gold Quanto futures will have Indian Gold spot purity 995 as the underlying and Silver Quanto futures will have Indian Silver spot purity 999 as the underlying, and both the contracts will be settled in cash in US dollars.

"Trading in these Quanto futures contracts at India INX will commence from Monday, August 31, 2020," India INX said in a press release.

The Indian gold price will be quoted per 10 grams and silver price be quoted on a per-kg basis. Trading will take place from Monday to Friday and each trading day will be spread over two sessions, viz. 4.30 am to 5 pm (session 1) and 5 pm to 2.30 am (session 2).

V Balasubramaniam, Managing Director, India INX, expressed confidence that the newly launched bullion futures contracts will attract market participants looking for foreign commodity exposure minus exchange rate risks.

The contracts will be traded from 4.30 am to 5 pm (session 1) and 5 pm to 2.30 am (Session 2), from Monday to Friday, according to the press release.

"The available contracts for both Quanto futures contracts is twelve (12) serial monthly contracts. Both Quanto futures contracts will be settled in cash in US Dollar," the release added.

Gold and silver are already being traded as individual commodities on the country's premier commodity exchange, Multi Commodity Exchange (MCX). On August 24, MCX launched the country's first bullion index Bulldex, with gold and silver as underlying.

India International Exchange Limited is India's first international stock exchange and is situated at the International Financial Services Centre, GIFT City in Gujarat.