BSE’s international arm, India International Exchange (India INX) has received the regulatory approval to launch the Gold Quanto and Silver Quanto Future contracts. Trading in these Quanto futures contracts at India INX will commence from Monday, August 31, 2020.
The underlying assets for Gold Quanto futures is Indian Gold spot purity 995 and for Silver Quanto futures is Indian Silver spot purity 999. The contract symbols are GOLDQ & SILVERQ respectively. For both contracts, the contract value is (Quoted Price * 1) USD, contract size is 1, minimum price movement (tick size) is 1 and the tick value is USD 1. The quotation for Gold Quanto futures is Indian gold price quoted per 10 grams (E.g. Bid 50000 – 50001 Ask) and for Silver Quanto futures is Indian silver price quoted per kg (E.g. Bid 60000 – 60001 Ask). The available contracts for both Quanto futures contracts is Twelve (12) serial monthly contracts. Both Quanto futures contracts will be settled in cash in US Dollar (US $). In terms of final settlement price, both contracts will be settled at IBJA PM Fix on the Expiry Day rounded off to the nearest tick. The trading hours will be from Monday to Friday from 4.30 am to 5 pm (session 1) and from 5 pm to 2.30 am (Session 2).
Commenting on the launch of these Quanto futures contracts, India INX MD and CEO Shri. V. Balasubramaniam said, “We are happy to announce the launch of Gold Quanto and Silver Quanto futures contracts and believe these products will attract market participants looking for foreign commodity exposure but without the accompanied exchange rate risk. These Quanto futures contracts will provide these market participants an effective hedge against exchange rate fluctuations. It will further enhance India INX’s position as an international exchange where you get all products at one place, seamlessly.”