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The National Commodities & Derivatives Exchange Ltd (NCDEX) today said it was adding new non-agri commodities in its portfolio and strengthening warehousing infrastructure as part of the growth strategy.
"We plan to add non-agri commodities in our portfolio. Apart from gold and silver, we are now launching steel long contract," NCDEX Chief Business Officer Vijay Kumar told reporters here.
The exchange has recently launched gold 1 kg and silver 30 kg contracts.
"The new precious metals contracts allow participants to hedge more effectively since the tender period begins one day after the expiry of the currency futures contracts on other exchanges--additionally it allows them to give or take deliveries earlier than the other contracts in the market," Kumar said.
With growing open interest and volumes across several products, NCDEX is seeing a record number of participants in its crude oil complex, he said.
NCDEX has recently rationalised transaction charges for all members, resulting in substantial savings to them. The new structure of transaction charges gives market participants the ability to trade and hedge at a lower cost than before.
Kumar said NCDEX was also taking lead in initiating further reforms in commodity warehousing infrastructure to strengthen the ecosystem.
These proposed reforms include significant steps such as improvement in sampling process, compulsory second assaying during inbound deposits at warehouses, and 100% testing for outbound deliveries.
Kumar said the exchange has six active warehouse service providers and is looking at strengthening the same.
Commenting on the settlement guarantee fund (SGF), Kumar said: "As per FMC guidelines, we are working out and figures will be announced by next Monday".
Commodity futures regulator Forward Markets Commission (FMC) has asked commexes to implement SGF guidelines by August 31, 2013.
Exchanges will have to deposit 5% of gross revenue earned in a previous year from FY15 onwards (April 1, 2014). As an initial contribution to SGF, exchanges will have to shell out a minimum of Rs 10 crore or 5% of the sum total of gross revenues earned by them in the five financial years through FY13, or from the date they became operational, he added.
