With an aim to educate the commodity stakeholders about the importance of commodity futures market; and the benefits of price discovery and price risk management Multi Commodity Exchange of India Ltd. (MCX) in association with Ambikapur Sarafa Sangh, organized an awareness programme at Ambikapur (Chhattisgarh) on October 27, 2015. The programme was designed for members of the association, and local bullion market participants of Ambikapur.
While the programme was organized to create awareness and enhance knowledge among the commodity stakeholders about the commodity futures market in India, it also served to explain in detail all the technicalities associated with the working of a commodity exchange— with respect to the products, price discovery, transparency and risk management mechanism in trading and settlement of transactions. The experts from MCX through a detailed presentation explained the concept of Hedging and its benefits to the market participants.
The experts further explained about the importance and need for risk management measures, role of commodity futures exchanges, historical perspective and growth of commodity markets in India, and diverse and innovative product basket offered by MCX, which includes different variants of gold and silver futures contracts to suit the hedging requirements of diverse participants’ profiles.
Mr. Gopendra Soni, President, Ambikapur Sarafa Sangh said, “According to me, the main advantage of the commodity futures exchanges is the transparent pricing mechanism which has been widely benefiting the commodity stakeholders, including the bullion players.
“Most importantly, commodity derivatives exchanges such as MCX offer state-of-the-art facilities like online trading, clearing and settlement of futures transactions and the existence of a settlement guarantee fund assures prudent risk management practices followed by the exchange, thereby providing the market participants a completely monitored trading platform.