Wednesday, January 28, 2015 5:36PM IST (12:06PM GMT)
Commodity Awareness Programme by MCX and FMC on Price Risk Management
Bolpur, West Bengal, India
With an aim to enhance the basic understanding of commodity futures market and importance of price risk management among the commodity value chain participants, Multi Commodity Exchange of India Ltd (MCX) today organised a commodity awareness programme in association with the Forward Markets Commission and Bolpur Traders Association at Bolpur (dist. Birbhum, West Bengal).
During the session, while explaining about the various aspects of commodities trading in India, the experts from MCX gave the participants a bird’s eye view into the world of futures trading and the plethora of benefits thereof to the underlying commodity value chain participants. They explained about the functioning of Commodity Exchanges, the benefits of commodity futures for trading, and price risk management.
Furthermore, they mentioned that such programmes encourage more and more participants to benefit from the price discovery and price risk management, the twin functions performed by the commodity exchanges. They also shed light on the regulatory perspective. Moreover, the speakers emphasised on the manner in which the participants can avoid the risks of fluctuating prices by hedging their price risks using commodity futures contracts. This was followed by a question and answer session at the end of the formal presentation by the experts.
While thanking FMC and MCX, Mr. Angur Khan, President, Bolpur Traders Association said, “This interactive and educational programme gave us a detailed insight into the commodity futures market. I am hopeful that our members will make effective use of the Exchange platform to hedge their price risks emanating from the volatility in commodity prices.”
It was an intensive programme, to equip the market participants with a comprehensive overview of the commodity futures market in India. Participants evinced keen interest about the futures contracts offered by the Exchange in bullion, base metals, energy, and agri segments. The programme was well received by the market particpants.
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.