The Hindu Business Line : MCX: We are No. 1 in gold futures

THE Multi-Commodity Exchange of India Ltd (MCX) on Tuesday claimed it has emerged as the No. 1 commodity exchange in the country by capturing more than 85 per cent of the total gold futures trading volumes.

Daily volume in gold futures contracts exceeded 400 kg and recorded open interest of more than 300 kg, an MCX press release said.

MCX had emerged as the preferred exchange by the bullion market as it demonstrated highest efficiency levels. With increasing volumes on the exchange and overwhelming trading interest of the participants, MCX had also taken positive steps in ensuring phased introduction of trading in new commodities, the release said.

Commenting on the expanding bullion market, Mr Jignesh Shah, Managing Director, MCX, said: "We believe that the Indian gold market is on the verge of a huge transformation with the introduction of futures trading. Domestic gold fabricators and exporters are participating in a large way to hedge their market risk on MCX. Conservatively estimating, Indian gold futures market is expected to multiply 10 times of spot market in the next three years, this will create a market of 8,000 tonnes of gold, valued at Rs 4,80,000 crore."

"Optimistically, with a 50 times multiple, which is a standard multiple factor in markets of TOCOM and COMEX, the Indian gold futures market is expected to grow to a staggering size of 40,000 tonnes of gold, valued at Rs 24,00,000 crore. The collective market size of all commodities put together is expected to be to the tune of $600 billion. Further, this market is expected to reach over 5,000 cities in all 550 districts in the country, riding smoothly on technology & industry-friendly facilities provided by MCX," he added.

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