MCX Commences Options Trading in Crude Oil Contracts

OILMONSTER.COM- Multi Commodity Exchange of India Ltd. (MCX) on Tuesday commenced options trading in crude oil contract. The contract has witnessed traded volume of 2058 lots with value of Rs 101.67 crore, as of 05:30 pm today. 

The exchange has currently launched June and July 2018 option contracts in crude oil, with one MCX crude oil futures contract (100 barrel) as the underlying. On its expiry, if exercised, the open position shall devolve into the respective underlying futures position. This new options contract alongside the popular crude oil and crude mini (10 barrel) futures contracts will benefit the crude oil stakeholders, providing them with an efficient solution to hedge against unfavourable price movements in the global crude oil markets. This options contract is available for trading on MCX from 10:00am to 11:30pm /11:55 pm. 

In order to encourage active participation in the market the exchange is not levying any transaction fees on the commodity options contracts including crude oil till September 30, 2018. 

Speaking on the launch, Mr. Mrugank Paranjape, MD & CEO, MCX said, "We're delighted with the successful launch of our options contract in crude oil. We are keen to ensure that our product portfolio has the diversity necessary to service a wide spectrum of commodity stakeholders. The new crude oil options contract will further strengthen our crude product basket while offering immense value to its stakeholders who are seeking to hedge against volatility in oil prices.”

Mr. Sanjay Rawal, President, Commodity Participants Association of India (CPAI) said, “The options contract which would complement the crude oil futures contract is a welcome addition to MCX’s energy basket. There is already a tremendous amount of interest as we see today from the market participants to hedge in this new product given the recent trends in global geopolitics and volatility in crude oil. We believe that the physical market participants will highly benefit from this contract.” 

Courtesy: www.indiatimes.com