BSE becomes India's first exchange to complete physical delivery in Gold mini 'Options in Goods' contract
Mumbai, June 30, 2020: BSE, Asia’s oldest exchange and the world’s fastest exchange with the speed of 6 microseconds executed maiden delivery of Gold mini on 'Options in Goods' framework. The delivery was produced by a Delhi based member while the counterparty buyer was from Punjab. The physical delivery was successfully completed at the exchange designated vault in Ahmedabad, Gujarat. Amid this lock-down, BSE successfully managed to complete the entire process seamlessly. BSE has completed one full delivery cycle in Gold mini in 'options in goods' contracts.
BSE launched the first 'options in goods' contracts on Gold mini and Silver kg based on spot prices from June 1, 2020. These contract are converted in to physical delivery on expiry. The gold mini options trading unit on BSE is 100 grams and base value is Rs. per 10 grams. The maximum order size is 10 KG, delivery units are 100 grams and deliverable at BSE's designated vaults at Ahmedabad.
BSE has received extremely positive response from all stakeholders for these contracts and is the market leader in the bullion options segment. In about a month since launch, BSE has surpassed the cumulative turnover of all exchanges from bullion “options” contracts. BSE registered the highest turnover of INR 2,442 crores in 'options in goods' contracts.
Sameer Patil, Chief Business Officer - BSE, said, "Seamless and integrated delivery via the exchange mechanism is extremely beneficial for small and mid-level jewellers and bullion dealers, who can not only hedge their price risk but also avail delivery on expiry of the contract. BSE has emerged as the second largest Exchange in India as far as turnover is concerned in commodities.
Besides, delivery based on the options in goods framework will help further integrate physical and derivatives markets, and bring in more transparency, liquidity and ease of trade for buyers-sellers alike."
Supporting the Prime Minister's vision of "Make in India" and "Atmanirbhar Bharat" of a self-reliant nation and commitment of the Government notified standards, BSE also became India's first exchange to issue guidelines to comply by India Good Delivery Standard on its commodity derivatives platform. The Bureau of Indian standard (BIS) has notified standards - IS 17278 : 2019, sets the standards for purity, form and provenance of gold and silver bars and the way in which they are manufactured, traded and delivered.
BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualized entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, commodity derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.
BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE also has a dedicated MF distribution platform BSE StAR MF which is India Largest Mutual Funds Distribution Infrastructure. On October 1, 2018, BSE launched commodity derivatives trading in Gold, Silver, Copper, Oman Crude Oil, Guar Gum, Guar Seeds & Turmeric.
BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.
Indian Clearing Corporation Limited, a wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full novation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), associate company of BSE, is one of the two Depositories in India.
BSE has set up an Investor Protection Fund (IPF) on July 10, 1986 to meet the claims of investors against defaulter Members, in accordance with the Guidelines issued by the Ministry of Finance, Government of India. BSE Investor Protection Fund is responsible for creating Capital markets related awareness among the investor community in India.
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