BSE, Asia’s oldest exchange and the world’s fastest exchange with the speed of 6 microseconds executed delivery of Gold mini on ‘Options in Goods’ framework for fourth consecutive months on September 30, 2020.
The entire physical delivery process was seamlessly completed at the exchange designated vault in Ahmedabad, Gujarat.
BSE has completed four full delivery cycles of Gold mini in ‘options in goods’ contracts expiring on all four months since launch.
The exchange also executed the first ever deliveries of Silver ‘Options in Goods’ contracts.
Commenting on this milestone, Shri. Sameer Patil, Chief Business Officer, BSE, said, “Gold and Silver ‘Options in Goods’ contracts have rapidly developed robust liquidity and become an ideal instrument in hedging Bullion volatility and price risks. These are still in the early stages, but we are witnessing wide participation due to superior BSE services such as free of cost front-end trading software and co-location services, best-in-class risk management framework and wide product portfolio.”
BSE will also facilitate settlement and delivery of gold contracts based on the Bureau of Indian Standards (BIS) from domestic gold refiners from October 2020.
The development of the Gold Standards for good delivery is an important milestone for not only the refiners but for the entire ecosystem which operate in the Indian bullion ecosystem.
This initiative is also in line with the government’s efforts towards a transition to be self-reliant or ‘Atmanirbhar’ nation. BSE’s seamless trading platform, integrated with a robust delivery framework for ‘options in goods’ contracts have proved extremely beneficial and cost efficient for jewellers, bullion dealers and other physical market participants.
It empowers them to not only hedge their price risk but also avail delivery on expiry of the contract.