MCX Announces Launch of New Recycled Gold Futures Contract

SEATTLE (Scrap Monster): Multi Commodity Exchange (MCX)- the India-based independent commodity exchange announced plans to launch a new gold futures contract on recycled gold. The proposed contract will be based on Indian gold standard and will enable delivery of domestically recycled yellow metal on the exchange platform.

While speaking at the recently held event organized by the Commodity Participants Association of India, PS Reddy, Managing Director, MCX noted that the exchange is currently working with bullion traders and LBMA to develop a process through which recycled gold could be delivered on exchange platform. The new contract will not only help to boost domestic gold recycling in the country, but also help in price discovery, Reddy added.

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Over the next three-month period, MCX will announce the specifications of the new contract. A list of recognized gold refiners eligible for delivery on exchange will also be announced soon.

The exchange had recently reported 16% surge in consolidated operating revenue in Q3 FY 2020. The net profits had recorded 32% jump. The consolidated EBITDA margins stood at 56% for the quarter.