India’s MCX Bourse Expects 50% Jump in Turnover This Fiscal
Multi Commodity Exchange of India Ltd., the nation’s biggest such bourse, expects a 50 percent jump in turnover in the fiscal year ending this month and may start freight futures and commodity indexes once the law allows.
“Growth has been accelerating the past few months,” Lamon Rutten, chief executive officer of the exchange, known as MCX, said in a phone interview from Mumbai today. “There is an underlying trend.”
Turnover of MCX and rivals in India, the world’s biggest user of bullion and sugar, jumped 52 percent from April through February to 106 trillion rupees ($2.3 trillion) because of a surge in trading gold and metal futures, data from the industry regulator show. A bill that will repel a six-decade-old law that banned trading in options and indexes in commodities is pending approval from lawmakers.
“We are ready with a whole slate of contracts,” Rutten said. “We would look at commodity indices, we would look at freight futures.”
The bourse, which has more than 80 percent of the nation’s market for commodity futures, will resubmit documents needed to gain approval for an initial share sale, Rutten said. An earlier approval from the markets regulator lapsed as the sale wasn’t conducted.
“We are not postponing this, sooner rather than later,” he said, without giving a specific date. “We haven’t made any secret that we think it’s a very good idea for an exchange.”
---Editor: Ravil Shirodkar
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