ICDX launches new gold contract

The Indonesia Commodity and Derivatives Exchange (ICDX) has launched a second gold contract called UBS gold contract, complementing its first PAMP gold contract, Investor Daily reported on Monday.

The paper said that the new gold contract is expected to start transaction early next week.

The paper quoted ICDX President Director Megain Widjaja as saying that the UBS gold contract is certified by local firm PT Untung Bersama Sejahthera (UBS). In comparison, the PAMP gold contract is certified by the London Bullion Market Association.

The UBS contract is traded in lot unit, where one lot is equal to 100 grams. The contract period is only one week, as compared to the three months of the PAMP contract.

Marketing Director of UBS Catur R. Limas said that the company was committed to supply 25 lots of gold per day. If market demands turn out to be strong, the company is ready to double or triple the daily supply volume. Currently, physical delivery is still limited in two cities: Jakarta and Surabaya. (*)