NCDEX trade volumes at record high at beginning of New Year
MUMBAI (Commodity Online):The New Year has brought cheer at NCDEX, India’s leading agricultural commodity derivatives exchange, which recorded the highest total traded volume of 'Rs. 11, 290 crores on 3rd January 2012. This was higher than the previous highest traded volume of 'Rs. 11061 crores, recorded on 29th July, 2011, NCDEX said in a press release.
Even more than the growth in volume is the fact that NCDEX has been consistently seeing an increase in participation from the physical market participants and long term investors. One of the indicators for this is the growing open interest (OI) - where NCDEX has shown a 30% increase over the previous year, the press release added.
Open Interest is the value represented by open positions and reflects the strength in participation by hedgers and investors. Long term growth for an exchange requires a growth in open interest, demonstrating greater relevance of the exchange to the physical value chain.
Since NCDEX contracts serve as the price benchmarks to the local and international markets, it is important that the growth is maintained and higher participation is sought from hedgers. Together with the FMC, NCDEX proposes to have discussions with the key hedgers and determine ways to create greater awareness amongst the value chain participants. Risk Management and Price Discovery are the primary benefits that the Exchange is providing to the economy as a whole and to the agricultural sector in particular, NCDEX press release said.
“NCDEX has recently launched contracts in RBD Palmolein, Rubber, Brent Crude and PVC among others that have been designed to meet the risk mitigation needs of the value chain participants and we expect an increased interest in the contracts offered on the exchange platform” said Mr. Vijay Kumar, Chief Business Officer, NCDEX.
