FREQUENTLY ASKED QUESTIONS
22. What are the major commodity Exchanges?
The
Government of India permitted establishment of National-level Multi
-Commodity exchanges in the year 2002 and accordingly three exchanges
have come into picture. They are
• Multi -Commodity Exchange of India Ltd, Mumbai (MCX).
• National
Commodity and Derivatives Exchange of India, Mumbai (NCDEX).
• National Multi Commodity Exchange,
Ahmedabad (NMCE).
However there are regional commodity exchanges functioning all over
the country.
At
international level there are major commodity exchanges in USA, Japan
and UK.
Some
of the most popular exchanges around the world are given below along
with the major commodities traded :
| EXCHANGE |
MAJOR
COMMODITIES TRADED |
| New
York Mercantile Exchange (NYMEX) |
Crude
Oil, Heating Oil |
| Chicago
Board of Trade (CBOT) |
Soy
Oil, Soy Beans, Corn, Wheat |
| London
Metals Exchange (LME) |
Aluminium,
Copper, Tin, Lead, Zinc |
| Chicago
Board Option Exchange (CBOE) |
Options
on Energy, Interest rate |
| Tokyo
Commodity Exchange (TCE) |
Silver,Gold,Crude
oil, Rubber |
| Malaysian
Derivatives Exchange (MDEX) |
Rubber,
Soy Oil, Crude Palm Oil |
| Commodities
Exchange (COMEX) |
Gold,
Silver, Platinum, Copper |
| Multi
Commodity Exchange (MCX) |
Gold,
Silver, Crude Oil, Mentha |
| National
Commodity & Derivative Exchange (NCDEX) |
Guar
Seed, Urad, Chana, Sugar |
23. Commodity markets are small. Aren't they?
This
is the biggest myth about the commodities market.Commodities (spot)
Markets in India are about Rs.11 trillion worth per annum.
Internationally
the futures market in commodities is 5-20 times that of the spot market.
Look at the table given below. Even if we assume a 5 times multiple
the commodity futures markets can grow up to become Rs.55 trillion per
annum.
| Market |
Annual
Physical Trade (Rs. in Cr.) |
3
time multiple
(Rs .in Cr.)
|
5
time multiple
(Rs. in Cr.)
|
| Bullion |
40,000 |
1,20,000 |
2,00,000 |
| Metals |
60,000 |
1,80,000 |
3,00,000 |
| Agriculture |
5,00,000 |
15,00,000 |
25,00,000 |
| Energy |
5,00,000 |
15,00,000 |
25,00,000 |
| Total |
11,00,000 |
33,00,000 |
55,00,000 |
| Per
Day * |
4400 |
13200 |
22000 |
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