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Awareness Programmes on Commodity Futures to Further Market Participation

December 15, 2014 - Rajkot, Gujarat, India

Multi Commodity Exchange of India Ltd (MCX), organised commodity awareness programmes along with the Forward Markets Commission (FMC) at Ankleshwar, and Rajkot on December 13, 2014, and December 14, 2014 respectively. The programmes organised in association with Ankleshwar Jewellers Association, and Gems & Jewellery Association, Rajkot respectively, aimed at furthering the participation of market players from the bullion industry on commodity futures exchanges and also focussed on hedging bullion price exposures.
The experts at the forum provided an overview about the commodity futures market to the participants. They 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. During the programme, there were sessions on introduction to commodity derivatives, importance of price discovery and price risk management, fundamentals of bullion, outlook on gold, hedging techniques and strategies, regulatory perspective, and trading & settlement, among others.
Chittaranjan Rege, Vice President-PKMT, MCX said, “The Exchange provides benefits of higher liquidity, transparent pricing, central clearing, robust risk management and surveillance systems, efficient delivery mechanism and lower delivery and cash risks, to the market participants. Moreover, some of the reasons for the popularity of MCX’s bullion contracts are a diverse mix of participants, price discovery, innovative product mix, hedgers’ participation and hedging efficiency.”
Mr. Sanjay Shah, President, Ankleshwar Jewellers Association said, “It’s time for the bullion value chain participants to understand and use these platforms to hedge against the volatility in bullion prices, so as to be able to compete with the world.”
Mr. Jaysukhbhai Adesara, President, Gems & Jewellery Association, Rajkot said, “The experts highlighted the benefits of futures trading for various participants of the commodity ecosystem, especially the bullion traders and jewellers. Moreover, they informed about the innovative contracts with smaller lot sizes—gold mini, gold petal, gold guinea, silver mini and silver micro— offered by the Exchange that would meet the varied needs of participants from the commodity ecosystem.”
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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