The Multi Commodity
Exchange (MCX) has sought approval from the market regulator Sebi for
introducing liquidity enhancement schemes for its recently launched gold
options contracts.
MCX’s gold options contracts daily
average turnover declined to Rs. 130 crore in Nov as against Rs 297 crore in
Oct. The daily average turnover of gold futures contracts on the MCX was Rs. 2054
cr, and Rs 2297 in October and November, respectively.
The ratio of gold options contracts
to gold futures contracts slipped to less than 3.5%, by volume, in Dec from
over 14% in October. Prior to the launch of the gold options contract, market players
were hoping volumes in this section would rise to at least two times those of
gold futures contracts.
The Sebi has particular guidelines
for certain volumes in the existing Gold-options contracts before allowing
contracts of smaller denominations. As per sources, MCX was likely to
engage jewellers and organize awareness programmes to enlarge volumes in gold-options
contracts.