Continuing its constant endeavours to spread awareness about hedging commodity price risks, Multi Commodity Exchange of India Ltd. (MCX) in association with the Forward Markets Commission and Jamshedpur Jewellers Association, organised an awareness programme at Jamshedpur on January 12, 2015. The programme was tailored for members of the association, and local bullion market participants from Jamshedpur.
The intent of the programme was to create a better understanding of the commodity futures market among the participants, thereby enabling their inclusion. The interactive programme focussed on the fundamentals of commodity trading, benefits of hedging,. The experts threw light on market fundamentals and outlook of the bullion industry.
During the sessions, the experts from MCX, Mr. Ranjith Singh, Sr. Manager- Business Development, and Mr. Vibhor Tandon, Asst. VP-Business Development, spoke on various aspects of commodities trading in India. Mr. Vibhor Tandon, while explaining the benefits of commodity futures markets to the audience said, “The commodity awareness programme organized at Jamshedpur received a tremendous response. It was focussed on the need for risk management and importance of commodity futures market in providing a national level reference pricing forum. This definitely was missing prior to the evolution of MCX as a price discovery platform.
“MCX offers different variants of gold futures contracts with denominations varying from 1kg to as small as 1gm to suit various participants’ hedging needs. Similarly, in silver, MCX offers contracts of denominations varying from 30 kg to 1 kg. These innovative contracts enable the hedgers to effectively manage the impact of price fluctuations and control their risks efficiently”, he added
Mr. Chetan Adesara from Jamshedpur Jewellers Association said, “This informative programme helped the participants in understanding the concept of hedging as also learning to trade in commodity futures. Moreover, the speakers emphasised on the manner in which the participants can avoid the risks of fluctuating prices by hedging their price risks using bullion futures contracts.”
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.