India INX to launch Gold Quanto, Silver Quanto futures contracts on Aug 31

NEW DELHI: BSE‘s India International Exchange (India INX) has received regulatory approval for launching Gold Quanto and Silver Quanto futures contracts. “Trading in these Quanto futures contracts at India INX will commence from Monday, August 31, 2020,” a release said on Wednesday.

The underlying assets for Gold Quanto futures is Indian Gold spot purity 995 and for Silver Quanto futures is Indian Silver spot purity 999.

According to the release, trading hours for these contracts would be from 4.30 am to 5 pm (session 1) and from 5 pm to 2.30 am (Session 2). It would be from Monday to Friday.

“The available contracts for both Quanto futures contracts is twelve (12) serial monthly contracts. Both Quanto futures contracts will be settled in cash in US Dollar,” it added.

India INX MD and CEO V Balasubramaniam said these products will attract market participants looking for foreign commodity exposure but without the accompanied exchange rate risk.

“These Quanto futures contracts will provide these market participants an effective hedge against exchange rate fluctuations. It will further enhance India INX’s position as an international exchange where you get all products at one place, seamlessly,” he said.

India INX is located in the GIFT IFSC (International Financial Services Centre).