Professional Documents
Culture Documents
Presentation By:
Multi Commodity Exchange of India Ltd. (MCX)
Quality
Certification Spot Market
Agencies
Hedger
Warehouses (Exporters/
Millers/
Industry)
Producers
Commodities (Farmers/
Clearing Bank Ecosystem Co-operatives/
MCX Institutional)
Traders
Transporters/ (Speculators)
Support Arbitrageurs/
Agencies Client)
Consumers
(Retail/
Global Commodities Institutional)
Market
Multi Commodity Exchange of India Ltd, www.mcxindia.com
Commodity Markets - Overview
• List of commodities for futures trade – increased from 11 in 1990 to over 100 in 2003
• Institutionalization of agriculture
Farmers/ Producers
Merchandisers/ Traders
Importers
Exporters
Consumers/ Industry
Commodity Financers
• Risk Management
Any price risk that is not managed is a cost; any cost is a direct dent
on profitability
• Price Discovery
Futures prices can be used as indicative prices for negotiating the export
prices and also upcountry sales
Action Impact
• Wider base for speculators from other markets including securities market
• Best management practices, end of day mark to market, online margining and
surveillance, daily pay-in & pay-out are some of the features to woo the players
• Team
– Best Industry Professionals – Technology, Exchange Management and Advisory Board with 8
Decades of Exchange Management Expertise
– Best Support Agencies – Warehouses, Quality, Banks & Others
– Best Intermediaries across the country & in multiple commodities
• Technology
– State of the art Information Technology
– Real time price and trade information dissemination
– Robust risk management system and controls
• Techniques (Practices)
– Best International practices of Exchange governance
– Competitive membership fee structure and operational cost.
– To provide information - international & spot markets and commodity research