Multi Commodity Exchange of India (MCX) on Friday received the permission from the commodity markets regulator?Forward Markets Commission (FMC)?to launch iron ore futures contract.
The leading commodity exchange, promoted by financial technologies group would commence trading the iron ore futures contract from Saturday which would make it the first exchange to launch the contract. MCX?s iron ore contract is aimed at being the benchmark of Indian iron ore fines export market.
?India is the world’s third-largest iron ore supplier and plays a significant role in the global iron ore industry and the iron ore futures contract will go a long way in creating a market driven benchmark for the entire industry and also for those nations importing iron ore from India, mainly China, which is also the world’s largest importer.? Lamon Rutten, managing director & CEO of MCX said.
The MCX iron ore futures contract would give all participants an opportunity to hedge their price risks against the volatility in the physical market.