MCX To Kick Off Futures Trading In Bullion, Four

Mumbai, May 22: | Updated: May 23 2003, 05:30am hrs
Multi Commodity Exchange (MCX) of India, one of the four finalists for the nationwide multi commodity exchange (NMCE), plans to kick off operations by July-end. Initially the exchange would offer delivery-based online futures trading in bullion, castorseed, cotton, black pepper and rubber.

Of the three other NMCEs, only the Ahmedabad-based National Multi Commodity Exchange (NMCE) of India Ltd has kicked off its operations. Both the Indore-based National Board of Trade (NBoT) and the National Commodity & Derivatives Exchange (NCDEX) are finalising their respective plans to set up the NMCEs.

Promoted by Financial Technologies Ltd, MCX would offer commodity futures trading facilities through V-SAT connections. HDFC Bank is said to have agreed to act as the clearing bank for MCX. FTL has also promoted an online foreign exchange trading entity as IBS Forex Ltd.

The estimated Rs 25 crore project cost has been finalised and closed out, said MCX managing director Jignesh Shah. We dont need funds from outsiders, he added.

According to Mr Shah, MCX would is in the process of tying up with warehousing corporations from various regions as also with the designated quality certifying agencies in these regions. Expertise of technology, domain knowledge of the commodity markets and the strength of our management team are the three strong points with which we are confident of competing successfully with other NMCEs, Mr Shah said.