SMX Refines Contract Specifications for Gold Physical, Gold Cash and Silver Cash
Singapore Mercantile Exchange (SMX), the first trans-Asian multi-product commodity and currency derivatives exchange, is launching its Singapore-deliverable Gold futures and Gold Cash and Silver Cash futures contracts with revised specifications with effect from 8 August 2011, based on recommendations from the Product Committee and industry feedback.
The minimum deliverable grade of the Singapore deliverable Gold kilo bar futures contract would be revised from 995 to 999.9 and trading shall be conducted in current and two consecutive calendar months in addition to any even months falling within 12-months period starting with the current month. The trading units of Gold Cash & Silver Cash futures contracts would be reduced from 100 Troy ounces and 5000 Troy ounces to 32 Troy Ounces and 1,000 Troy ounces respectively. The revised contracts will take effect from the effective day mentioned.
V Hariharan, interim CEO of SMX, said: “We are pleased to refine our precious metals futures contracts while resizing them based on the demand in the Asian markets which make the contracts more relevant for the industry participants as an affective hedging and trading instrument. Since last month we have seen good participation in our EURUSD and Copper futures contracts and are hopeful of keeping up the momentum with the launch of these precious metals contracts.”