Published On: Tue, Nov 26th, 2013

ACE Announces the Launch of Futures Contract in Gold, Silver, Copper and Crude Oil Contracts

Dilip Bhatia, CEO, Ace Derivatives and Commodity Exchang

Dilip Bhatia, CEO, Ace Derivatives and Commodity Exchang

ACE Derivatives and Commodity Exchange a Kotak Anchored Enterprise, announced the launch of its Gold 1 kg, Silver 30 kg, Crude Oil and Copper futures contract to commence trading on November 27th, 2013.

About the futures contract of Gold 1 kg on its plaform The gold futures contract expiring in the months of February 2014 and April 2014 will be available for trading on the exchange platform. The basis center for the contract is Ex-Vault Ahmedabad (inclusive of all taxes and levies relating to import duty, customs but excluding sales tax /VAT, any other additional tax or surcharge on sales tax, local taxes and octroi). The price quotation shall be in Rupees per 10 gram and trading unit shall be 1 kg for 995 purity. It is a seller’s option delivery logic contract. In the wake of restrictions on the import of Gold in India, it has become very difficult for market participant to successfully hedge their physical requirements on existing futures platform offering Gold Contract. India is the largest importer of Gold in the world and the contract is expected to offer a domestically tradable and internationally benchmarked price to its participants.

About the futures contract of Silver 30 kg, Copper and Crude Oil Contract The Silver futures contract expiring in the months of March 2014 and May 2014 will be available for trading on the exchange platform. The basis center for the contract is Ex-Vault Ahmedabad (inclusive of all taxes and levies relating to import duty, customs but excluding sales tax /VAT, any other additional tax or surcharge on sales tax, local taxes and octroi). The price quotation shall be in Rupees per 1 kg and trading unit shall be 30 kg for 999 purity.

The Light Sweet Crude Oil futures contracts expiring in the months of December 2013, January 2014, February 2014 and March 2014 will be available for trading on the exchange platform. The basis center for the contract is Ex-Mumbai (excluding all taxes, levies and other expenses). The price quotation shall be in Rupees per barrel and trading unit shall be 100 barrels. The tick size shall be Rs.1.

The Copper futures contract expiring in the months of February 2014 and April 2014 will be available for trading on the exchange platform. The basis center for the contract is Ex-bhiwandi (exclusive of all taxes and levies relating to import duty, customs, Sales Tax/VAT as the case may be, special additional duty and octroi). The price quotation shall be in Rupees per 1 kg and trading unit shall be 1 MT. Silver is a compulsory delivery contract where as Copper and Light Sweet Crude Oil contracts are both option delivery settled contract.

Mr. Dilip Bhatia, CEO, Ace Derivatives and Commodity Exchange Limited said “We are pleased to foray in to Bullions, Crude Oil and Copper futures contract and look it as a timely initiative of Ace Commodity Exchange. This shall widen the product portfolio of the Exchange which shall not only benefit to the existing members in terms of more products to trade in but also help increase the reach of the exchange to Non Agri Participants as well.”

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