The Multi Commodity Exchange of India launched Silver 100 futures contracts on Monday (June 1), expanding its silver derivatives offerings and providing retail investors and small jewellers access to the commodity in much smaller tradable units. According to reports from CNBC TV18 and Moneycontrol, the new contract allows trading in 100-gram denominations, significantly lowering entry barriers compared to existing silver futures contracts of 1 kg, 5 kg and 30 kg. The new contract adds to MCX's existing silver futures lineup of 30 kg, 5 kg and 1 kg contracts, and monthly options in 30 kg and 5 kg denominations.
With this addition, MCX's silver portfolio now includes multiple futures and options instruments across different lot sizes. As reported by CNBC TV18 and Moneycontrol, the product was introduced based on feedback from market participants and is aimed at reducing capital requirements for small and medium enterprises as well as retail traders. Clearing and settlement will be managed by the Multi Commodity Exchange Clearing Corporation Limited (MCXCCL). The smaller denomination is designed to open the silver market to retail investors, small jewellers and SMEs seeking lower-ticket exposure and hedging access, enabling them to gain exposure to silver in quantities as low as 100 grams.
According to Praveena Rai, Managing Director and CEO of MCX, the new product is designed to help participants in the silver value chain manage price volatility more efficiently. As reported in a regulatory filing to Moneycontrol, "The Silver 100 futures contract helps businesses in India's silver industry protect themselves against price volatility." According to CNBC TV18, smaller contract sizes would allow jewellery businesses to hedge risks or take delivery in quantities better aligned with their inventory requirements. At contract expiry, participants will have the option of physical delivery with standardised quality norms and transparent making charges.
Alongside the launch, MCX also issued a circular revising its good delivery standards for silver, and invited domestic refiners to seek empanelment. As reported by CNBC TV18 and Moneycontrol, the move is aimed at strengthening domestic refining capacity and reducing dependence on imported silver through improved recycling participation. This strategic initiative demonstrates MCX's commitment to enhancing domestic silver market infrastructure and reducing India's dependence on silver imports while boosting domestic recycling.
