INSUBCONTINENT EXCLUSIVE:
Indian financial markets will make a paradigm shift on Monday, when equity bourses will launch commodity trading for the first time,
allowing trading in this asset class alongside all others on the same platform
BSE will launch commodity derivative contracts from October 1 while NSE will kick off similar contracts from October 12, 2018.
Till date,
launch the commodity derivatives segment
We have received representations from several trading / clearing members, suggesting that some more time be given to the market
intermediaries to put in place appropriate systems at their end for effective trading of commodity derivatives
like metals.
Both the bourses will begin with gold and silver futures contracts
NSE said Sebi has granted it approval for introducing derivative contracts on Gold 1 Kg, Gold Mini 100 grams and Silver 30 Kg on its
commodity derivatives platform.
On BSE, commodity trading will be conducted from 10.00 am to 11.30 pm from Monday to Friday
According to the exchange, its commodity derivatives platform will help efficient price discovery, reduce timelines and make it cost
gold and silver futures contracts will be exchange-designated vaults at Ahmedabad initially, and then the same will be expanded pan India in
the launch of commodities on stock exchanges, market participants will be able to trade in stocks, bonds, stock derivatives, exchange rates,
interest rates and commodity derivatives on the same platform
However, replicating or trying to create liquidity for the same contracts which has huge liquidity elsewhere can be a huge challenge
And, unless there is a clear benefit or advantage to clients to shift to these exchanges, it looks unlikely that there might be migration or
For example, Brent crude contract
It is much talked about now due to the volatility and the impact it has on the overall economy
