The Multi Commodity Exchange of India Limited (MCX), India’s first
listed exchange, is a state-of-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.
MCX offers trading in varied commodity futures contracts across segments including bullion, ferrous and non-ferrous metals, energy and agricultural commodities. The Exchange focuses on providing commodity value chain 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 2000 members, operations through more than 468,000 trading terminals (including CTCL), spanning over 1900 cities and towns across India. MCX is India’s leading commodity futures exchange with a market share of about 81 per cent in terms of the value of commodity futures contracts traded in Q1 FY2014-15.
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 MCXAgri, MCXEnergy, and MCXMetal. MCX has been certified to three ISO standards including ISO 9001:2008 quality management standard, ISO 27001:2005 information security management standard and ISO 14001:2004 environment management standard.
With virtually no debt and improved cost efficiency after contract renewals with FTIL MCX is a strong buy with short term target of 1500 and long term target of 3000.
