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BSE join hands with bullion trade associations to strengthen commodity derivatives market

11 August 2020


Leading stock market BSE on Tuesday said that it has joined hands with two bullion trade associations for strengthening the commodity derivatives market within the country. BSE has signed a Memorandum of Understanding (MoU) with Akola Sarafa Association and Akola Sarafa Va Suvarnakar Yuva Sangh in this regard.These associations represent members engaged in retail sale and trade of bullion.The pact is aimed toward facilitating cooperation between BSE and physical markets represented by these two trade bodies in areas like knowledge sharing, education and training, events also on explore areas of mutual interests to make sure the simplest interests of jewellers are fulfilled.BSE said it aims to arrange seminars and awareness programmes on price risk management for bullion traders and jewellers, and help them move to more organised sorts of trading.Awareness about effective hedging tools like derivatives contracts, especially 'options in goods' to enable jewellers face a volatile market would even be provided, it said.


The 'options in goods' contract offered by BSE makes it extremely beneficial for jewellers and bullion dealers, who can't only hedge their price risk but also avail delivery on expiry of the contract."Joining hands with Akola Sarafa Association and Akola Sarafa Va Suvarnakar Yuva Sangh brings expertise in creating suitable products, create deep physical network needed in bullion trade and added transparency in the domestic bullion derivatives markets," BSE Chief Business Officer Sameer Patil said."This engagement would benefit all market participants trading and hedging in Indian bullion derivatives market,"  Sameer Patil added.