Multi Commodity Exchange of India (MCX) has launched options contracts in gold, the first such contract in the precious metal after the regulator allowed options contracts in Commodity derivatives segment.
The launch was done at an event in the capital city by finance minister Arun Jaitley and was attended by senior bureaucrats along with representatives of regulatory bodies, professional bodies, corporate and banks.
The European-styled gold options are hedger-friendly and physically settled, which means on exercise at expiration the options position develops into corresponding underlying MCX 1 KG Gold futures position, said a statement issued by the exchange. Gold option contract, with gold (1 Kg) futures as underlying, expiring on November 28 and January 29 have been made available for trading, it added.
Having commenced operations in November 2003, MCX is the country's largest commodity exchange with a market share of 90.37% in 2016-17.
