MCX to launch 6-9 commodities futures in FY18

 MCX's partnership with Singapore Diamond Investment Exchange. MCX to launch 6-9 commodities futures in FY18The Multi Commodity Exchange of India ( MCX ) is keen on exploring new product launch avenues in fiscal year 2017-18. that some of the commodities being looked at include pepper, palmolein, groundnut, brass and diamond. Paranjape says there is definitely a market for diamond in the futures space and is betting Indian jewellery consumption and MCX's partnership with Singapore Diamond Investment Exchange. About 18 months after the merger of Forward Markets Commission with Securities Exchange Board of India (SEBI), do you think the market’s expectations have been fulfilled? There were 3-4 areas of expectations from the FMC-SEBI merger. First, in terms of much more standardisation and rationalisation of practices of rules of regulations across the two segments. The second was that with a new regulator — with the inter-linkages with the other financial sectors — we would see both, an increase in the number of products and participants or the type of products and participants. The market feels that if stock exchanges get the licence of issuing commodity exchange, MCX will have a major impact because everybody wants to come out in non-agri segment. How do you see the challenge? For MCX, it means an opportunity.

As much as it means that somebody can compete with us in commodities, it also means that we can enter new segments, whether it is currency, fixed income or equities. We have to decide, but it is straight away a good opportunity for us as well. Among currency, equity and fixed income categories, which one you prefer and launch when the universal exchange will be rolled out? Each of these segments has its own benefits, has its own plus points. If you look at it globally, equity exchanges and fixed income commodity currency exchanges are slightly distinct. So, as an asset class currency or fixed income is much closer to commodities than equities. How many new products will MCX launch in FY18? We are talking of new commodities in the Futures segment when I say products. When it comes to a completely new type of product like an Option or an index that is something totally different. Within the Futures space, at least 6-9 commodities is something that we would be very happy with. We have been speaking about some of these in the past, like there is pepper, RBD Palmolein, groundnut in the agri side. In the non-agri side you have got brass and diamond. We are also looking at some deliverable contracts in metals

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