Facts about India’s top commodities exchanges

By Ratnajyoti Dutta

NEW DELHI |
Tue Sep 27, 2011 1:00pm IST

NEW DELHI (Reuters) – Annual turnover on India’s commodity exchanges has more than quintupled to $2.5 trillion since futures trading started in 2003, but political hurdles hinder further development.

A bill for tougher oversight and freer entry of financial institutions and new product launches has waited for lawmakers’ approval since 2005, while government bans on trading in some agricultural futures have fed regulatory uncertainty.

Here are some facts about India’s top commodities exchanges:

MULTI COMMODITY EXCHANGE

MCX, among the first exchanges to open in India, accounts for more than 80 percent of the country’s commodity futures market. It ranked the world’s sixth largest commodity futures exchange by number of contracts traded.

* MCX recorded a turnover of 63,933 billion rupees ($1.3 billion) in 2009/10, a share of 82.34 percent of the total value of commodity futures in India.

* Top listed contracts: Gold, crude oil, silver, copper, natural gas, nickel, zinc are the top traded commodities.

* Most traded contracts: Gold, crude oil and silver

NATIONAL COMMODITY DERIVATIVES EXCHANGE LTD

Launched in 2003, NCDEX is the second biggest exchange and is promoted by leading financial institutions and state owned banks. Goldman Sachs holds a minority stake.

* NCDEX logged a turnover of 9,176 billion rupees ($185 billion) in 2009/10, accounting for about 12 percent of the total value of commodities futures in the country.

* Top listed contracts: Soyoil, pulses, soybean and rapeseed.

* Most traded contracts: Guar seed, soy oil and pulses

NATIONAL MULTI COMMODITY EXCHANGE

Based in Ahmedabad, NMCE was the first exchange in India to be promoted after the Indian government demutualised the platform for commodity futures. It started with futures in gold and silver.

* NMCE’s turnover stood at 2,279 billion Indian rupees ($46 billion)in 2009/10.

* Top listed contracts: Farm commodities.

* Most traded contracts: Rapeseed, soy oil and pulses

INDIAN COMMODITY EXCHANGE

ICEX, based in Gurgaon, was given recognition for futures trading in 2009, and is now building up its warehouse facilities. Reliance Exchangenext Ltd. is its anchor investor with MMTC Ltd., Indiabulls Financial Services Ltd., Indian Potash Ltd., KRIBHCO and IDFC among other partners.

* It posted a turnover of 1364.25 billion rupees ($27.5 billion) in its first year of operation (2009/10).

* Top listed contracts: Gold, crude oil, copper cathode, silver.

* Most traded contracts: Gold, crude oil and copper cathode.

ACE

Ace Commodity Exchange, earlier known as Ahmedabad Commodity Exchange Ltd, started futures operations in 2010, but has been in the commodity trading business more than 50 years. The Kotak group is a majority stake holder.

* Top listed contracts: Farm commodities.

* Most traded contracts: Soybean, pulses and soy oil.

(Reporting by Ratnajyoti Dutta; Editing by Clarence Fernandez)

Article source: http://feeds.reuters.com/~r/reuters/INbusinessNews/~3/h8a3QKX31QY/idINIndia-59569820110927

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