The commodities exchange, Multi Commodity Exchange of India on Thursday jumped 12% after Securities and Exchange Board of India (Sebi) allowed options trading in commodities on Wednesday.

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At 1016 hours MCX was trading at 1,378, up 10.26%, or 128.30 points. 

Among top gainers were Crude oil (2.32%), Natural Gas (1.31%), Nickel (0.93%), Lead (0.90%) and Lead mini (0.75%).

At present the only instrument available in the Commodity Derivatives market is futures on individual commodities. 

"Introduction of new commodity derivatives products has been a subject of deliberation as it is considered to be conducive for the overall development of the commodity derivatives market, attracting broad base participation, enhancing liquidity, facilitating hedging and bringing in more depth to the commodity derivatives market", Sebi said in the filing.

The decision came in after Finance Minister Arun Jaitley during his budget speech this year had announced that "new derivative products will be developed by Sebi in the Commodity Derivatives market”.

According to the circular, exchanges willing to start trading options shall take prior Sebi approval. The circular does not mention which commodities are allowed, nor does it indicate the date from when options contracts can start trading. The Sebi will issue detailed guidelines in due course.