Odisha News Insight

MCX organises Seminar on Hedging Bullion Price Risks

MCXCuttack, May 22: Multi Commodity Exchange of India Ltd. (MCX) and Forward Markets Commission (FMC) organized an awareness programme on commodity futures in association with Odisha Jewellery Association on May 22 2015 at Cuttack, Odisha. The programme was organised with intent to educate a large number of bullion value chain participants on the efficacy and importance of the commodity futures market.

Considering the needs of the bullion stakeholders based in and around Cuttack, the programme was focused on the ways and means to hedge bullion price exposures using Rupee denominated commodity futures contracts. The experts provided in-depth knowledge on the fundamentals of gold and silver, importance of hedging and how they can benefit from trading on a commodity futures platform. The experts also emphasized on various other aspects concerning the bullion sector. Additionally, they highlighted the role of FMC in regulating and monitoring the functions of commodity exchanges in building confidence of the market participants, and for the growth of Commodities Market in India.

Mr. Vinod Kumar Prusty, Joint Secretary, Odisha Jewelry Association, said, “Commodity exchanges such as MCX have been able to meet the hedging requirements of bullion market participants who are exposed to commodity price volatility. Moreover, as the utility of the commodity futures market is quite similar to that of insurance market, and the diverse product basket that MCX offers, provides a much-needed insurance against commodity price volatility, which has increased over the years.“

“Separately, by offering variants of both Gold and Silver futures contracts with different lot sizes—gold mini, gold petal, gold guinea, silver mini and silver micro—MCX has been able to cater to wide range of bullion participants, from all parts of the country. This has enabled a large number of small stakeholders exposed to commodity price volatility —and who were hitherto not able to do so due to large lot sizes—to manage their risks.”

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