Commodity Exchange of India Ltd (MCX), the golden exchange
has emerged as the No. 1 commodity exchange in India by
capturing more than 85 percent of the total gold futures
daily volume in gold futures contracts exceeds 400 Kilograms
and records open interest of more than 300 gilograms.
has taken a lead by constantly registering the highest
volumes and turnover in the bullion futures contracts.
It has emerged as the preferred exchange by the bullion
market as it demonstrates highest efficiency levels. With
increasing volumes on the exchange and overwhelming trading
interest of the participants, MCX has also taken positive
steps in ensuring phased introduction of trading in new
commodities. On December 29, 2003 MCX introduced trading
in rubber futures and will soon commence trading in oils
& oilseeds, grains & pulses, soft commodities
(cotton, sugar etc.) and spices & plantation segments.
on the expanding bullion market, Mr. Jignesh Shah, managing
director, MCX said, "We believe that the Indian gold
market is on the verge of a huge transformation with the
introduction of futures trading. Indian gold fabricators
and exporters are participating in a large way to hedge
their market risk on MCX. With increased participation
and trading volumes, MCX is emerging as the Golden Exchange
of the country"
added that, "conservatively estimates have found
that the Indian gold futures market is expected to multiply
at 10 times the rate of the spot market in the next three
years and this will create a market of 8,000 tons of Gold,
valued at Rs. 4,80, 000 crores.
calculating with a multiple of fifty, a standard multiple
factor in markets of TOCOM and COMEX, the Indian gold
futures market is expected to grow to a staggering size
of 40,000 tons of gold, valued at Rs. 24,00,000 crores.
The collective market size of all commodities put together
is expected to be of the order of US$ 600 billion.
this market is expected to reach over 5000 cities in all
550 districts of India, riding smoothly on state of the
art technology & industry friendly facilities provided
began live trading from November 10, 2003. On the first
day of trading, the maximum trading interest was witnessed
in gold and that too in the first contract month i.e.
(gold-13Feb 2004) in which 26 Trades were done. Gold also
witnessed an open interest of 8 Kgs at the end of the
trading session. With the trading activity picking up
and increased participation from market players coming
in, the volumes on gold contracts have shown a considerable
up trend. Hectic activity was witnessed in the last 4
trading days of the last calendar year when the volumes
crossed 100 Kgs mark and on the last day (31st Dec 03)
doubled to more then 200 Kgs. In the New Year, volumes
surged to a new high of 214 Kgs (single side) as observed
on January 5, 2004. Same bullish trends were noticed in
the open interest and daily turnover figures.
MCX the 'Trading Volume to Open Interest Ratio'
is well in comparison to what is being witnessed in the
globally established and matured commodity exchanges.
It's distinguishingly noticed that there is not a single
trading day on which the Open Interest has been reduced
to ZERO, which is a positive signal of an emergence of
extremely healthy market.
synchronisation and convergence between the 'Traded
Prices of GOLD on MCX and on New York Mercantile Exchange'
substantiates the fact that global benchmarks are already
being achieved in terms of the fitness and aptitude of
the exchange towards discovery of the best price and liquidity
being achieved with the active participation coming in
from all the streams of the commodity traders. This demonstrates
the fact that MCX stands by its enduring commitment to
be an exchange with highest competency ratio and transparency.
Thus ushering Indian agriculture
and commodity markets into a new age where transparency
is maximum, participation is from masses and market is
accessible from every nook & corner of the country.