NCDEX to launch gold, silver international futures contracts next week

The National Commodity and Derivatives Exchange Limited (NCDEX), is set to launch international futures contracts in gold and silver on Monday, December 29, 2008 to meet market demand as India is a big importer of bullion.

These contracts named gold international and silver international can be bought and sold in lots of one kg and 30 kg respectively.

The contract size has been defined keeping in view the Indian consumer and the recent price trends. These contracts will be physically settled at Ahmedabad. Contracts would be settled on the basis of international prices in rupee denomination.

Highlights:

• Contracts expire on the last trading day of the month prior to expiry of the corresponding international bullion futures contract
• Settlement on expiry at import parity costing
• Real time and transparent international price-hedging contracts in  rupees for importers and traders
• Delivery logic based on  intention matching

With the introduction of futures market in India, NCDEX started offering contracts in gold and silver and offers futures trading in 1kg gold and 30kg silver contracts.

These contracts are available for trading during all 12 months of the year and are settled by compulsory delivery mechanism.