MCX India is shorthand for Multi Commodity Exchange of India Ltd. Headquarters for MCX, an advanced, high tech electronic commodity futures exchange, is in Mumbai. The Exchange, which is demutualized, was established to commence business in November of 2003. It was orchestrated by FTIL (Financial Technologies Ltd.) FTIL is perpetually acknowledged by the Indian government to facilitate online trading, as well as clearing and settling commodity futures throughout India. The Exchange offers a great alternative to something like the Public Bank Gold Investment, which is more like a passbook account based on metal, rather than a contract for it. And it offers a chance for people to buy silver, for example, with leverage as opposed to just taking physical delivery of a given quantity or using a storage program.
MCX India Ranks Number 1 In India
MCX India is the dominant force in Indian commodity futures. It claims more than eighty percent of the entire Indian commodity futures market. There are over two thousand registered members that populate in excess of one hundred thousand trader work stations in the country. For 2009 figures, this young exchange ranked 6th based on the number of contracts traded that year. It is simply one of the fastest growing commodity futures exchanges worldwide.
MCX India Ranks Number 6 In The World
Although MCX India placed sixth in volume overall for 2009, it ranked even higher for number of traded contracts in specific categories. For instance, it was ranked number 1 for silver. The Exchange came in 2nd for gold, putting it solidly in the top across the globe for these key precious metals. It earned a number two ranking for a key base metal as well, namely copper. Interestingly, it took the #2 position in natural gas. Right behind that, the Exchange was 3rd in oil.
In addition to these high-ranking commodities, the Exchange offers a wide range of resources to trade. With over forty items to choose from, there is plenty of variety including bullion, agricultural commodities, and both ferrous and non-ferrous metals.
Certification for three ISO standards are in place. These include the ISO 9001:2000 Quality Management System standard, ISO 14001:2004 Environmental Management System standard and the ISO 27001:2005 Information Security Management System standard. Anonymous trades are enabled on the trading platform, all in an effort to promote transparent pricing and efficient market action. Given that so many are commodities traded world-wide, the trading system allows for trading in Indian currency.
MCX India And Its Strategic Alliances
MCX India purposes to involved in all of the newest transformations in the commodity futures markets. To facilitate this, the Exchange has put together key relationships with a myriad of top international exchanges. This include Euronext-LIFFE, LME (London Metal Exchange), New York Mercantile Exchange, SHFE (Shanghai Futures Exchange), Sydney Futures Exchange, AFET (The Agricultural Futures Exchange of Thailand), and more. Keeping a finger on the pulse of the commodities futures markets and participating in innovation is paramount to providing the most avant garde experience possible for end users. In addition to the international exchange connections, the Exchange has forged nationwide relationships in an effort to enhance ethical standards. The infrastructure exists for promoting the improvement of the Exchange in particular, and commodities markets in general. To that end, the required facilities and service provision resources are in place.
MCX India With Strong Central Shareholders
As noted, MCX India is promoted by FTIL. The success of their efforts is demonstrated by the vote confidence conferred on the Exchange by leading Indian blue chip companies. This support extends internationally, as the major financial sectors around the globe participate. A breadth of pivotal equity alliances include SBI and its associates (State Bank of India), NYSE Euronext, Fid Fund (Mauritius) Ltd. – an affiliate of Fidelity International, BOI (SBI Life Insurance Co Ltd, Bank of India), IL&FS, Canara Bank, HDFC Bank, NABARD (National Bank for Agriculture and Rural Development), ICICI Ventures, NSE (National Stock Exchange of India Ltd), BOB (Bank of Baroda), Union Bank of India, Corporation Bank, Kotak Group, Citi Group and Merrill Lynch. As such MCX India offers a wide range of lateral strength.