FMC hikes position limits in gold contracts

MUMBAI Sun May 6, 2012 1:18pm IST

A salesgirl is reflected in a mirror inside a gold jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival in Kochi April 24, 2012. REUTERS/Sivaram V

A salesgirl is reflected in a mirror inside a gold jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival in Kochi April 24, 2012.

Credit: Reuters/Sivaram V

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MUMBAI (Reuters) - India's commodity markets regulator has asked the Multi Commodity Exchange (MCX) to increase the maximum positions that can be taken at an individual or member level for new gold contracts, without giving any reason.

The Forward Markets Commission (FMC) wants to hike the allowable position for an individual client to 2.5 metric tonnes from 2 tonnes, and increase the member position limit to 12.5 metric tonnes or 15 percent of market wide open positions, whichever is higher, from 6 metric tonnes.

"You (the MCX) are requested to launch bullion contracts as per the contract launch calendar and post the details of the approved contracts immediately," said the FMC in a statement posted on its website.

The MCX will launch its new gold February 2013 contract in early June, while the exchange has started trade in August gold mini contract on May 7 with new specifications.

(Reporting by Siddesh Mayenkar)

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