CORRECTED-UPDATE 1-Nasdaq offers cash-settled spot gold futures

* New 10-ounce spot gold futures will trade under NAU symbol
* Investors have no concerns on delivery, rollover-Nasdaq

Feb 8 (Reuters) - Nasdaq OMX Group Inc said
on Wednesday it is launching new spot gold futures that will be
cash-settled with an aim to simulate over-the-counter trading of
spot bullion.
The global exchange operator said it will partner with IKON
Global Markets, a U.S. futures commission merchant, to offer the
10-ounce contracts, which will trade under the symbol NAU on the
Nasdaq OMX Futures Exchange (NFX).
The new product will be settled on a cash basis, unlike the
CME Group's 100-ounce U.S. COMEX gold futures, which
allow physical delivery.
"Ultimately, all investors will benefit from a product with
unique features that allow for flexibility and trading
strategies without concerns over delivery and forward rolling
dates," Nasdaq said in a statement.
The over-the-counter market, which allows investors to trade
spot gold around the clock, and the U.S. gold futures are by far
the most popular global trading venues of gold and other
precious metals.
Gold futures allow funds and institutional investors to
trade on a leverage basis, and also gold producers to sell
forward contracts to hedge against the downside risk of their
future output.
NYSE Liffe, a unit of NYSE Euronext, offers
100-ounce gold contracts , while the CME Group also
offers 50-ounce COMEX miNY gold futures . Both products
offer investors the option of physical delivery.
Nasdaq said the new product was in line with the U.S.
Dodd-Frank legislation as it provides central counterparty
clearing and the client protections of The Options Clearing
Corp.