Media Release
BSE completes delivery of Gold in 'Options in Goods' contracts for 4 consecutive months; registers first Silver delivery
Mumbai, October 5, 2020: 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. BSE thanks the consistent support and active participation of all its members and looks forward to increased volumes in the future.
About BSE
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.
Media Contact:
Yatin Padia / Rahul Vyas/ Shruti Nitesh
022 2272 8516 / 2272 8472/ 8108000974
Yatin.padia@bseindia.com/ Rahul.vyas@indiainx.com/ shruti.nitesh@adfactorspr.com