MCX: Developing Indian Commodity Ecosystem

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MCX Developing Indian Commodity Ecosystem
Joseph Massey Deputy Managing Director MCX
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Why nations need commodities markets

• Commodities are generic
• Prices are determined on global basis
• international trade
• Information effect
• Inter-substitutability
• Food for energy
• Commodity as investment
• Price related switching
• Market pricing efficient gives long term
  signals
• All carry price risk better to manage

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Indian Contribution to Global Futures Market
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Market Share of Traded Futures Volume
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Share of Global Commodities in India
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Share of Agri, Energy Metals of the Total MCX
Volume in Contracts Traded (2006)
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Mini Contracts of Global commodities in Indian
Time Zone

• Availability of smaller contracts on Indian
  exchanges helps smaller traders/companies to
  hedge their risk
• Price discovery at Indian time zone
• High level of relationship between Indian and
  global markets in globally linked commodities

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New developments expected

• New products Options and Indices (Weather,
  commodity, Carbon Credits, freight, etc.)
• Exchange traded funds
• Banks, MFs and FIIs in commodities market
• Global strategic alliance and cross listing of
  products
• Domestic investors going global
• Capital account convertibility greater global
  integration

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MCX Growth Story
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Market Share of Global Bullion Exchanges (2006)
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Market Share of Global Energy Exchanges 2006
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MCX Comdex Vs Global Commodity Indices
Correlation of COMDEX with
CRB Index 33.71
Rogers com Index 83.24

DJAIG com Index 48.70
GSCI spot
Index 69.24
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MCX Cross Border Strategic Alliances
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MCX Reforming Commodity Ecosystem
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Gramin Suvidha Kendras MCX - India Post
Initiatives
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Commodity Suchna Kendras MCX Initiative
An e-Ticker in Indore, Madhya Pradesh
First Commodity Suchna Kendra at APMC, Vashi
being inaugurated by Shri Sharad Pawar
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Thank You!
Contact 102 A , Landmark Suren Road,
Chakala Andheri (East) Mumbai 400 093. Tel
91-22 - 6709 9300 Fax 91-22 - 6709 9044
Web www.mcxindia.com
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is solely for informational purpose and should
not be regarded as a recommendation by MCX. All
information in the presentation is obtained from
the sources believed to be reliable and MCX or
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representation as to its completeness or
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