IIBX to Introduce Gold Futures Trading

SEATTLE (Scrap Monster): The India International Bullion Exchange (IIBX), located in GIFT City Gandhinagar, is set to offer gold futures trading. Mock runs for gold futures trading already began at the country’s first bullion exchange two weeks ago.

“The exchange is in the process of implementing a new trading platform for futures trading in bullion. The IIBX will conduct mock trading sessions daily from October 3, except on Saturdays and Sundays,” states a circular issued by the exchange.

“The mock trading sessions are designed to help members familiarize themselves with the features of the new trading platform, trading terminal, clearing and settlement processes, and risk management features in the new gold futures trading platform,” explains Ashok Gautam, managing director and CEO of IIBX.

He adds, “Gold futures trading on IIBX will be in dollar denominations. Resident entities in India, other than individuals, are permitted to hedge their gold price risk through gold futures on the IIBX platform. This gives them better risk management capabilities while conducting gold price risk hedging. This aligns with the long-term vision of Gift City and IIBX to onshore offshore businesses.”

The mock trading period for gold futures is 45 days, said sources. These mock trials serve to gather feedback and make necessary improvements while encouraging more participation.

Courtesy: www.indiatimes.com