Common clearing for commodity exchanges in offing

It would reduce transaction cost for market participants and strengthen risk management systems

In a bid to increase transparency and strengthen the clearing mechanism for commodity exchanges the government of India has proposed for a common clearing system for all commodity exchanges.

As per a release by the government it would reduce the transaction cost for market participants and strengthen the risk management systems.

The government in June this year had constituted a working group to streamline the clearing mechanism for commodity exchanges.

It is learnt that the group has submitted its report. The ministry has sought feedback from market participants within 30 days.