MCX, the country’s largest commodity exchange, has reduced its gold option expiry to monthly from bi-monthly. The move is expected to improve liquidity on the exchange and attract more participation.
Ajay Kumar, Director, Kedia Commodities, said the move will benefit jewelers as they do not have to wait for two months for expiry of options contract and this will also reduce the cost of hedging.
The move is a win-win situation for both the market participations and the exchange as it will bring more players to hedge their positions and this will result in higher earning for MCX, he added.
The exchange will launch five new gold options contracts expiring in December, February, April, June and August.
Interestingly, the share price of MCX has rallied sharply in last few days as the monthly options contract will bring in more revenue, said Kumar.
