India's second largest commodity exchange, the National Commodity and Derivatives Exchange (NCDEX), added gold and silver futures contracts to its portfolio at the end of December 2008. According to the exchange, the contracts were launched in response to persistent market demand.
The Gold International and Silver International contracts allow trading in lots of 1kg of gold and 30kg of silver respectively. The contracts will be physically settled on the basis of international prices in rupees at Ahmedabad in Gujarat, India.
NCDEX has reported a healthy interest in its gold contract with volume registering 122kg in a day. The new contracts are set to challenge India's largest commodity exchange, the Multi Commodity Exchange (MCX), which currently holds a monopoly of the country's metal bullion market.
The beginning of 2009 has seen India's three national commodity bourses report record volumes, with MCX reporting a total turnover of Rs 49.58 lakh crore ($1.02 trillion) in 2008, a 39.8% increase from its previous year's trading.
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