NSE launches commodity derivative contracts in gold, silver

National Stock Exchange of India Ltd (NSE) on Friday launched commodity derivatives contract in gold and silver.

To start with, the exchange said it will focus on key non-agri commodities and gradually broaden our product offerings to agri-commodities. Commodity futures contracts on Gold (1 Kg), Gold Mini (100 gms) and Silver (30 Kg) are now available for trading on NSE, an exchange statement said here.

The contracts will be physically settled on expiry with Ahmedabad as the base centre. NSE is also planning to extend delivery centres to all major metros.

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The introduction of commodities to it existing suite of asset classes gives the broking community a complete NSE advantage to trade and clear at one single location, it said in a statement.

“NSE is committed to deepen the Indian commodity markets by providing convenient and cost-efficient onshore hedging mechanism for domestic as well as global participants.  Investors would also be able to trade in multiple asset classes at a single trading venue on NSE resulting in capital efficiency,” NSE managing director and CEO Vikram Limaye said.

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The commodity segment has witnessed an overwhelming market response in the form of high amount of membership applications thereby reiterating the faith the broking community has on NSE’s ability to provide a fair, transparent and a robust infrastructure platform, he said.