MCX Silver 1000 Contract Witness Record Delivery of 1010 KG
The contract witnessed an average daily open interest of 1516 lots, of which 1010 kg of kilo bar was delivered. Thus, 66 per cent of the open position resulted in delivery.
Mr. Shreekant Javalgekar, MD & CEO, MCX said: “We are proud of the fact that MCX is the world’s first exchange to launch a kilo-bar deliverable contract. The contract offers market participants a choice of hassle-free delivery as well as maintaining it in a dematerialised form. The open interest witnessed by Silver 1000 contract demonstrates the commitment and conviction of the market participants in it.”
For delivery, MCX has notified one-kilo 999 purity silver bullion bar of MMTC-PAMP India private limited, a joint venture between MMTC Limited (a Govt. of India Undertaking) and PAMP S.A. Switzerland (one of only three refineries worldwide honoured as ‘Referee’ by both the London Bullion Market Association and the London Platinum and Palladium Market).
Mr. Rajesh Khosla, Director, MMTC-PAMP India said: “We are honoured that our product quality consistency has been acknowledged by MCX. Our one-kilo 999 purity silver bullion bar and an 8g 9999 purity minted gold coin are notified as good delivery by the Exchange. This is the first instance where products manufactured by a domestic refinery-cum-mint are listed as deliverable on the exchange. The day is not far when, with the active support of MCX, we will not only launch more products but also achieve LBMA Good Delivery status, which will firmly place India on the international bullion refining platform.”
Over the years the demand for silver has been increasing owing to the good returns generated by the precious metal. The Silver 1000 contract is a unique contract that will go a long way in meeting the needs of physical market participants and retail investors as it facilitates delivery of 1 kg silver bar at lower margins as compared to the hitherto 30 kg bars.
Mr. Ashok Agarwal, Founder, Globe Capital Market Limited said: “MCX’s Silver 1000 contract has enabled our retail customer base in North India take delivery. This innovative deliverable kilo bar silver contract will make New Delhi one of the largest delivery centres of silver in India.”
Mr. Mukesh Khotari, Director, Riddhi Siddhi said: “Earlier market participants had to take delivery of 30 kg silver bars, however, with MCX’s Silver 1000 contract they have been able to take delivery of 1 kg silver bar at lower margins.”