JFX eyes gold contract transaction volume of 1.2 tons

The Jakarta Futures Exchange (JFX) expects that transaction volume of its recently launched gold contracts to jump to 1.2 tons next year from the estimated 400 kg this year, Bisnis Indonesia reported on Wednesday.

The paper quoted JFX President Director Sherman Rana Khrisna as saying that there has been solid demand from local retail investors for investment in gold, which hopefully would make trading in the contract to gradually becomes liquid.

?With increasing number of retail investors participating in the transaction, liquidity will improve,? he said.

The JFX sets five different gold contract units including 5-gram, 10, 25, 50, and the highest 100-gram, denominated in rupiah and contract tenure of one-month, the paper said, adding that reference price for the contract is taken from the London Bullion Market Assocation. (*)