Home » International News » 2014 » December » December 22, 2014

Awareness Programme on De-Risking Price Exposures through Commodity Futures

December 22, 2014 - Mahuva, Gujarat, India

Multi Commodity Exchange of India Ltd (MCX) organised an awareness programme in association with the Forward Markets Commission and Shree Sharaf Soni Association, at Mahuva on Friday, December 19, 2014. It aimed at furthering the participation of market players from the bullion industry on commodity futures exchanges and also focused on hedging bullion price exposures.
It was a forum to create a better understanding on the commodity futures market among the participants, and the benefits of de-risking livelihoods through hedging. They were explained about the use of an exchange platform such as MCX to manage risk to which they would be exposed to, and volatility associated with commodity prices. The interactive session focused on fundamentals of bullion, outlook on gold, hedging techniques, trading strategies, had participants from the bullion industry seeking clarification on how they can benefit from trading on a commodity futures platform.
During the programme, the experts from MCX spoke on various aspects of commodities trading in India. They explained about the functioning of Commodity Exchanges, the benefits of commodity futures for trading, and price risk management. Furthermore, they mentioned that such programmes encourage more and more participants to benefit from the price discovery and price risk management function performed by the commodity exchanges.
Mr. Vijaybhai Dhakan, President, Shree Sharaf Soni Association said, “The speakers highlighted that the Exchange offers futures trading in bullion which is benchmarked to international prices, and by trading on an exchange platform such as MCX, the bullion value chain participants will be able to effectively manage their price risks. Moreover, it was interesting to know about the different variants of both Gold and Silver contracts with different lot sizes —gold mini, gold petal, gold guinea, silver mini and silver micro— offered by MCX, to suit the various participants’ profiles.”
About MCX:

Having commenced operations on November 10, 2003, Multi Commodity Exchange of India Limited (MCX) is India’s first listed, national-level, electronic, commodity futures exchange with permanent recognition from the Government of India. MCX offers the benefits of fair price discovery and price risk management to the Indian commodity market ecosystem.  Various commodities across segments are traded on MCX. These include bullion, energy, metals and agri commodities. The exchange has forged strategic alliances with various Indian and International commodity exchanges and business associations. 

Source: Business Wire India


Comment on this story