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The sub-committee of the advisory committee appointed by the commodity derivatives market regulator the Forward Markets Commission (FMC) has recommended to phase out 'seller option' contract from the trading platforms.
In its first set of recommendations, the sub committee said, “In view of the introduction of staggered delivery mechanism, the restraint of delivery has been reduced to a greater extent and thus, the logic of having ‘seller option’ may be re-considered and phased out.”
On acceptance of these recommendations, gur, kapas and soybean contracts on the National Commodity & Derivatives Exchange (NCDEX) would require either modification to trade only under staggered delivery or phase-out.
Currently, the three commodities i.e. gur, kapas and soybean are traded with ‘seller option’ in addition to staggered delivery.
“There is no need of a contract under staggered delivery to have associate ‘seller option’,” said Naveen Mathur, Associate Director, Angel Broking.
