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Awareness Programme on Managing Commodity Price Risks

December 15, 2014 - Sumerpur, Rajasthan, India

Multi Commodity Exchange of India Ltd (MCX), organised a commodity awareness programme in association with the Forward Markets Commission (FMC) at Sumerpur (Rajasthan) on Saturday, December 13, 2014. It aimed at broadening the participation of market players from the bullion industry on commodity futures exchanges and also focused on hedging bullion price exposures.
During the programme, the experts gave an insight into the technicalities of working of the commodity markets with respect to the products, price discovery, transparency and risk management mechanism in trading and settlement of transactions. They further elaborated on the topics such as the benefits of futures trading, role of commodity futures exchanges, and the regulatory perspective.  It was a platform to create a better understanding of the commodity futures market among the participants, thereby enabling them to hedge risks, in the face of volatile market conditions.
Mr. Shivanshu Mehta, Vice President-Business Development, MCX said, “The bullion contracts offered by the Exchange take in to account the changes in the physical market premium, which is a reflection of the Indian fundamentals, that is, demand and supply factors, in addition to the international gold prices and the Rupee-Dollar exchange rates. Thus, over time price of MCX’s bullion contracts have become a benchmark for bullion prices in India.”
“Moreover, MCX’s gold contracts offer the best hedging efficiency among the futures contracts traded on the Indian commodity futures exchanges”, he added.
Mr. Shantilal Surana, President, Shree Sheoganj Sarafa Sangh said, “We are intrigued by innovative contracts with smaller lot sizes—gold mini, gold petal, gold guinea, silver mini and silver micro— offered by the Exchange, that would enable us to hedge our price risks effectively. We thank FMC and MCX for organizing this programme at Sumerpur, which will benefit us immensely.”
Mr. Champal Danmal, Secretary, Shree Brahaman Swarnkar Samaj said, “Trading on a platform such as MCX, will allow the market participants to lock in prices in advance, so that they can reduce the potential for unanticipated loss or competitive disadvantage.”
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


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