REPORT ON MULTI COMMODITY EXCHANGE
Multi Commodity Exchange of India Ltd (MCX) (BSE: 534091) is an independent commodity exchange based in India. It was established in 2003 and is based in Mumbai. The turnover of the exchange for the fiscal year 2009 was US$ 1.24 trillion, and in terms of contracts traded, it was in 2009 the world's sixth largest commodity exchange. MCX offers futures trading in bullion, ferrous and non-ferrous metals, energy, and a number of agricultural commodities (mentha oil, cardamom, potatoes, palm oil and others). In 2012, MCX has taken the third spot among the global commodity bourses in terms of the number of futures contracts traded. Based on the latest data from Futures Industry Association (FIA), during the period between January and June this year, about 127.8 million futures contracts were traded on MCX. MCX has also set up in joint venture the MCX Stock Exchange. Earlier spin-offs from the company include the National Spot Exchange, an electronic spot exchange for bullion and agricultural commodities, and National Bulk Handling Corporation (NBHC) India's largest collateral management company which provides bulk storage and handling of agricultural products. In February 2012, MCX has come out with a public issue of 6,427,378 Equity Shares of Rs. 10 face value in price band of 860 - 1032 Rs. per equity share to raise around $134 million. It is the first ever IPO by an Indian exchange.
TABLE OF CONTENT:
OVERVIEW ON MULTI COMMODITY EXCHANGE:
PRODUCT OF MULTI COMMODITY EXCHANGE:
IMPRESSIVE GROWTH OF MULTI COMMODITY EXCHANGE:
KEY SHAREHOLDER OF MCX INDIA:
TECHNICAL VIEW ON STOCKS:
MCX is regulated by the Forward Markets Commission. MCX is India's No. 1 commodity exchange with 83% market share in 2009 The exchange's main competitor is National Commodity & Derivatives Exchange Ltd Globally, MCX ranks no. 1 in silver, no. 2 in natural gas, no. 3 in crude oil and gold in futures trading (But actual volume is far behind CME group volume as Silver is traded in 30 kg lots on MCX whereas CME traded in Approx 155 kg Lot size same in Gold 1 kg : 3. kg Approx and Crude 100 Barrels : 1000 Barrels on CME) and major volume in manipulated as there in no strict regulation in Indian markets just to Escalate the prices of Shares of company. Also the major volume comes from Arbitration of CME and MCX which is also not legal to do. The highest traded item is gold. MCX has several strategic alliances with leading exchanges across the globe As of early 2010, the normal daily turnover of MCX was about US$ 6 to 8 billion MCX now reaches out to about 800 cities and towns in India with the help of about 126,000 trading terminals MCX COMDEX is India's first and only composite commodity futures price index
OVERVIEW OF MCX:
The Multi Commodity Exchange of India Limited (MCX), Indiaâ€™s first listed exchange, is a stateof-the-art, commodity futures exchange that facilitates online trading, and clearing and settlement of commodity futures transactions, thereby providing a platform for risk management. The Exchange, which started operations in November 2003, operates within the regulatory framework of the Forward Contracts Regulation Act, 1952 (FCRA, 1952) and regulations there under.
MCX offers trading in more than 30 commodity futures contracts across segments including bullion, ferrous and non-ferrous metals, energy, and agricultural commodities. The exchange focuses on providing commodity ecosystem participants with neutral, secure and transparent trade mechanisms, and formulating quality parameters and trade regulations, in conformity with the regulatory framework. The Exchange has an extensive national reach, with over 2100 members, operations through more than 400,000 trading terminals (including CTCL), spanning over 1770 cities and towns across India.
MCXâ€™s ability to use and apply technology efficiently is a key factor in the development of its business. The exchangeâ€™s technology framework is designed to provide high availability for all critical components, which guarantees continuous availability of trading facilities. The robust technology infrastructure of the exchange, along with its with rapid customization and deployment capabilities enables it to operate efficiently with fast order routing, immediate trade execution, trade reporting, real-time risk management, market surveillance and market data dissemination.
PRODUCT OF MCX:
Aluminum, Copper, Lead, Nickel, Steel Long (Bhavnagar), Steel Long (Govindgarh), Steel Flat, Tin, Zinc
Gold, Gold HNI, Gold M, I-gold, Silver, Silver HNI, Silver M, Silver Micro
Cotton L Staple, Cotton M Staple, Cotton S Staple, Cotton Yarn, Kapas, Jute
Brent Crude Oil, Crude Oil, Furnace Oil, Natural Gas, M. E. Sour Crude Oil, ATF, Electricity (Now delisted), Carbon Credit
Cardamom, Jeera, Pepper, Red Chili, Turmeric, Cumin Seed, Coriander
Arecanut, Cashew Kernel, Coffee (Robusta), Rubber
Chana, Masur, Yellow Peas, Tur, Urad
HDPE, Polypropylene (PP), PVC
OIL & OIL SEEDS Castor Oil, Castor Seeds, Coconut Cake, Coconut Oil, Cotton Seed, Crude Palm Oil, Groundnut Oil, Kapasia Khalli, Mustard Oil, Mustard Seed (Jaipur), Mustard Seed (Sirsa), RBD Palmolein, Refined Soy Oil, Refined Sunflower Oil, Rice Bran DOC, Rice Bran Refined Oil, Sesame Seed, Soymeal, Soy Bean, Soy Seeds CEREALS
Maize, Barley, Rice, Sharbati Rice, Basmati Guargum, Guar Seed, Gurchaku, Mentha Oil, Potato Rice, Wheat (Agra), Potato (Tarkeshwar)
IMPRESSIVE GROWTH OF MCX:
MCX is India’s leading commodity futures exchange with a market share of 87.3 per cent in terms of the value of commodity futures contracts traded in FY 2012-13. The Exchange was the third largest commodity futures exchange in the world, in terms of the number of contracts traded in CY2012, based on the Futures Industry Association’s annual volume survey released in March 2013. Moreover, as per the survey, during CY 2012, MCX was the world's largest exchange in silver and gold futures, second largest in copper and natural gas futures, and the third largest in crude oil futures.
To ease participation, the Exchange offers facilities such as calendar-spread facility, as also EFP (Exchange of Futures for Physical) transactions which enables participants to swap their positions in the futures/ physical markets. The exchange’s flagship index, the MCXCOMDEX, is a real-time composite commodity futures price index which gives information on market movements in key commodities. Other commodity indices developed by the exchange include MCX Agri, MCX Energy, and MCX Metal. MCX has been certified to three ISO standards including ISO 9001:2000 quality management standard, ISO 27001:2005 information security management standard and ISO 14001:2004 environment management standard.
KEY SHAREHOLDER OF MCX:
Financial Technologies (I) Ltd., State Bank of India and its associates, National Bank for Agriculture and Rural Development (NABARD), National Stock Exchange of India Ltd. (NSE), Fid Fund (Mauritius) Ltd. - an affiliate of Fidelity International, Corporation Bank, Union Bank of India, Canara Bank, Bank of India, Bank of Baroda, HDFC Bank, SBI Life Insurance Co. Ltd., ICICI ventures, IL & FS, Merrill Lynch, and New York Stock Exchange
TECHNICAL VIEW OF MCX:
GOLD OUTLOOK: TREND: - CONSOLIDATE
• 35070 • 36500
• 29090 • 27500
RECOMMENDATION: Gold trading near 32900, it may show some downward movement due to weak global cues. Gold may move toward strong support around 30500, so it is very dicey to taking long position.
SILVER OUTLOOK: TREND: - CONSOLIDATE
• 60000 • 64200
• 50000 • 48400
RECOMMENDATION: Silver trading near 55000, it may show some downward movement due to weak global cues. Silver may move toward strong support around 51000, so it is very dicey to taking long position.
CRUDE OIL OUTLOOK: TREND: - CONSOLIDATE
• 7200 • 6900 • 7000 • 6500
RECOMMENDATION: Crude oil trading near 7200, it may expected to continue with the bearish trend due to profit booking and weak global cues. Crude oil may move toward strong physiological support around 6500, so it is very dicey to taking long position.
COPPER OUTLOOK: TREND: - CONSOLIDATE
• 500 • 525
• 470 • 435
RECOMMENDATION: Copper trading near 485, Copper had climbed in the previous days on back of weakening Rupee and expected to continue with the bearish trend due to profit booking and weak global cues. Copper may show more downward movement towards support level around 435, so it is very dicey to taking long position.
This report is based on our preeminent research. We use different informative websites for necessary information. MCX has several strategic alliances with leading exchanges across the globe. MCXâ€™s ability to use and apply technology efficiently is a key factor in the development of its business. MCX has More than 20 Key share holders. MCX has been continuously raising the bar through effective research and product development, intelligent use of information and technology, innovation, thought leadership and ethical business conduct. Gold may move toward strong support around 30500, so it is very dicey to taking long position. Silver may show some downward movement due to weak global cues. Copper had climbed in the previous days on back of weakening Rupee and expected to continue with the bearish trend due to profit booking and weak global cues.
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Published on Sep 3, 2013
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