Trading Restrictions on MCX Option Expiry Day

On MCX, trading in Crude Oil and Natural Gas options is currently restricted until 7:00 PM on the expiry day due to the possibility of devolvement of in-the-money (ITM) options into futures contracts.

While this restriction may have been justifiable earlier due to low liquidity, the situation has significantly improved. These contracts are now highly liquid, and restricting trading hours may unnecessarily limit market participation and opportunities for traders.

Furthermore, even in cases where devolvement occurs, the corresponding futures contracts expire after a few days, giving sufficient time for brokers and clients to manage settlements.

@nithin, Please re-evaluate these trading hour restrictions on expiry day and consider allowing trading until the usual market close time.

We do allow trading till 11.20 PM ie ten mins before to close in MIS product type on expiry day for crude and natural gas, if you have position in NRML you can convert it to MIS. Will make changes on nudge to convey this message.

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Thanks.

This sheet here mentions the last trade time till 7.00 PM, so maybe update this as well.

Thanks , will get it done.

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What about Silver and Gold? There is a decent volume in 1,000’s strikes on expiry day. Can MIS be allowed there as well?

Very few strikes of Gold and Silver options are having some volumes. We will review it.

Strikes that are multiples of 500 for Gold and 1000 for Silver have good OI and volume 1-2 days before expiry (For Example, today), so there is a good case for allowing trading on these strikes on expiry day, based on some OI filter like you used to do for Sensex and Bankex.

Currently, we are exploring the possibility of allowing MCX MIS options using OI and Volume. We cannot arbitrarily blacklist or allow certain strikes.

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Any update or ETA for this?