Financial Daily from THE HINDU group of publications
Sunday, Oct 12, 2003
Financial Daily from THE HINDU group of publications Sunday, Oct 12, 2003 |
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Investment World
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Derivatives Markets Agri-Biz & Commodities - Derivatives Markets Industry & Economy - Precious Metals GOLD & SILVER: How to trade their futures
FUTURES contracts in 2 precious metals — Gold and Silver as approved by Forward Markets Commission are available for trading with effect from October 3, 2003. The futures contracts will remain open concurrently for 3 months (December 2003 to February 2004) in the case of both the commodities. New contracts to be introduced will be intimated from time to time. New contract: A new contract will be introduced on the trading day following the expiry of the near-month contract. Expiration day: The commodity futures contracts shall expire on the 15th of the expiry month. If 15th is a trading holiday, the contracts shall expire on the preceding day. Permitted lot size: The permitted lot size for the commodity futures contracts is as specified in the contract specifications of the commodity. Quantity freeze: Quantity freeze for futures contracts shall be 5000 units of 100 grams in the case of gold and 1500 units of 30 kg for silver. Circuit breaker: Price freeze for the day and for the life of the series are proposed: * * 3% band above or below the last trade price of the contract, * * 5% band above or below the last closing price of the contract * 50% band above or below the opening price of the first day of trading of the series. Transaction Charges: They will be Rs 6/- per lakh of turnover per month per clearing/trading member for both the commodities. Price Quotation: This means the units of commodity in which the price will be quoted - 10 grams for hold and 1 kg for silver. Trading Units: This means the units of commodity in which it will be traded per contract. (i.e. Price Quotation multiplied by multiplier factor of 30 for silver and 10 for gold) - 100 grams for gold and 30 kgs for silver. Tick size: This means the variation in the price quotation allowed on the Exchange - Re 1. Settlement: Open positions in futures contracts in gold and silver can be settled during the delivery month by way of tendering warehouse receipt of the underlying commodity issued by Central Warehousing Corporation. The buyer shall settle the delivery in Tender+3 days (i.e., make payments due after deducting delivery margins paid, if any). This is effective from October 3, 2003. Edited extracts sourced from National Multi - commodity Exchange of India Limited (website: www.nmce.com)
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