Page 20 - Bullion World Issue 1 May 2021
P. 20

Bullion World | Issue 01 | May 2021






          NSE Gold Mini Options:


          Redefining Gold


          Hedging





           NSE is the World’s largest derivatives   investors. These advantages are not just
           exchange and the market leader    in terms of the cost of trading but also in
           across various asset classes traded   terms of the trading flexibility offered by
           in the domestic markets. With this   the characteristics of Options on goods   Mr Nagendra Kumar
           rich experience gained from the other   contracts.                  NSE
           segments, NSE embarked on its journey
           in commodity derivatives in the month   Many of the Jewellers and Bullion players
           of Oct 2018 by introducing commodity   have already optimised their hedging   “ The Open Interest (OI)
           futures contracts on Gold and Silver.  by adding options to their books. This is   in gold options contracts
                                             evident from the healthy Open interest
           NSE has launched the Gold Mini Options   (the number of outstanding contracts   on NSE had touched a
           contracts on 8th of June 2020 and   awaiting settlement), which is considered   high of 7041 contracts
           the journey can be summarised in a   as one of the best barometers to assess   with an average OI
           single word ‘Innovation”. The launch of   the performance of a derivative contract.  of 3463 contracts and
           the Gold options contract on NSE has   The Open Interest (OI) in gold options
           brought in new dimension to the way   contracts on NSE had touched a high   volumes hovering at
           Gold is being Hedged. The physically   of 7041 contracts with an average OI of   a monthly average of
           settled options Contract based on the   3463 contracts and volumes hovering at   46345 contracts, since
           underlying commodity, with a small lot   a monthly average of 46345 contracts,
           size of 100 grams, offers some unique   since the commencement of the   the commencement of
           advantages to the entire value chain   contract.                    the contract.    ”
           participants as well as to the retail





























                                                    *Max OI for the month


              “   NSE has conducted over 118 awareness /
               knowledge sessions, including the programs
                     conducted jointly with the industry


                                  associations.   ”


           20
   15   16   17   18   19   20   21   22   23   24   25