Silver 100 Futures Debut on MCX; New Contract Allows Trading in 100-Gram Lots

The Multi Commodity Exchange of India (MCX) on Monday launched the Silver 100 futures contract, a new 100-gram silver derivatives product aimed at bringing more retail investors and small businesses into exchange-traded silver markets.

Trading in the contract started on 1 June 2026. Contracts are available with expiries in June, July, August, September, October and November 2026, according to an exchange circular.

The launch adds a smaller-sized contract to MCX's existing silver derivatives basket, which currently includes silver futures contracts of 30 kg, 5 kg and 1 kg, along with silver options contracts in 5 kg and 30 kg monthly tenures.

Contract Specifications and Trading Rules

The Silver 100 futures contract has a trading unit of 100 grams. Prices will be quoted for 10 grams on an ex-Ahmedabad basis. The quoted price will include import duty and customs levies but exclude GST and other local taxes.

MCX has also introduced a layered daily price limit mechanism. The contract will initially have a 4% price band. If breached, the limit may be expanded to 6% without a cooling-off period. A breach of the 6% threshold will trigger a 15-minute trading halt before the band widens to 9%.

Praveena Rai, Managing Director and Chief Executive Officer of MCX, said the new contract is designed to help businesses in the silver industry manage price risks without taking exposure beyond their actual inventory requirements.

Physical Delivery Through Ahmedabad Centre

The contract will be compulsorily settled through physical delivery. Ahmedabad has been designated as the delivery centre through facilities accredited by MCX Clearing Corporation Limited (MCXCCL). The delivery unit has been fixed at 100 grams, making it accessible for jewellers and smaller market participants.

MCX said only silver bars with 999 fineness and compliant with IS 2112:1981 standards will be eligible for delivery. The bars must carry serial numbers and originate from LBMA-approved suppliers or refiners approved by the exchange. Silver with purity below 999 fineness will not be accepted.

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The delivery tender period will cover the last three trading days, including the expiry day. All open positions remaining at contract expiry will move into compulsory delivery settlement.

The final settlement price, known as the Due Date Rate (DDR), will be derived from Ahmedabad spot prices for 999 purity silver in 1-kg lots and proportionately converted to a 100-gram value. Clearing and settlement of the contracts will be handled by MCXCCL.

Sources:

Livemint

MSN