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Thursday 23 January 2020

Options trading to help formalise gold trade: Jaitley

Delhi: Gold options trading was launched on the leading commodity bourse MCX by Finance Minister Arun Jaitely today to formalise trade in the yellow metal.

Options are derivatives which gives buyer the right but not the obligation to buy or sell an underlying asset or instrument at a specific price on or before a certain date.

 “This marks avery important evolution in trading of yellow metal itself. It hedges all risks by giving them the option of futures,” Jaitley said after launching the options trade on the auspicious day of Dhanteras today.

Jaitely emphasised that the government was taking all efforts to formalise gold trade and added  “I am sure more it formalises, better it is for consumers, jewellers and those trading in this. That’s in consonance with the business environment for future that we see for us”.

The regulator Sebi has allowed the first product for options trading after 14 years of commencement of commodity exchanges in the country. The gold options contract launched today allows trading in 1kg gold.

Finance Secretary Ashok Lavasa, Economic Advisor to PM Bibek Debroy, MCX Chairman Saurabh Chandra and MCX Managing Director and CEO Mrugank Paranjape were present at the event.

MCXis the leading commodity bourse in the country with a market share of over 90 per cent.

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