| The IPE is Europe's leading energy futures and options exchange which provides a highly regulated marketplace where industry participants use futures and options to minimise their price exposure in the physical energy market. | |
| With over $12 billion daily trade turnover, IPE has contributed significant contract volumes towards the success and growth in its energy contracts. Since its inception, the IPE has seen enormous growth in global energy market. | |
| Business Standard spoke to Richard Ward, chief executive of IPE, on the potential that India holds for the growth of Brent crude oil futures and options. Excerpts: | |
| What is the contribution of brent crude oil of the total $12 bn daily trade on IPE? | |
| Currently, the share of crude has gone up to 50 per cent, balance 50 per cent has been shared by gas. Till recently the crude oil's share was around 70 per cent but being gas as regional and crude as global stuff, the contribution of gas is going up dramatically. | |
| What is the volume and turnover of brent crude oil you are targeting at the NCDEX? | |
| At present, we can just say that potential of brent crude oil future at NCDEX is vast as India is importing about 45 per cent of crude oil for its consumption. We are very optimistic towards the good volume of brent crude oil futures on the exchange. | |
| Futures in India is not a new concept but not as popular as that has been in other countries. For creating awareness, especially, in rural areas we need to have an extensive awareness programmes. | |
| Whether IPE and NCDEX is emphasizing on awareness programmes also? | |
| Yes. NCDEX has already done a lot for creating awareness and will be doing so for brent crude futures. | |
| Can a trader buy or sell on IPE through NCDEX? | |
| No. As regulators would not permit trading. We are largely focusing on providing prices in rupee as well as dollar term which I am sure would be beneficial for Indian traders. | |
| Do you have long term plan to start other energy futures on NCDEX? | |
| Yes. We are, however, first looking at brent crude oil futures. Once this succeeds, we will think of other energy futures. | |
| Which are the other commodity exchanges you have tied up with for energy futures other than NCDEX? | |
| We have tied up with TOCOM where energy futures are doing very well. We are expecting the similar turnover and volumes at NCDEX. | |
| How long do you expect, NCDEX to reach a turnover of $1 bn? | |
| Depends upon its trade success in India. If traders are accepting well, brent crude futures would touch this figure very soon, otherwise it may take little long also. | |
| Today, India is investing a substantial amount of its economy of $3bn on crude imports. The potential of crude oil futures, especially in India, is targeted to touch Rs 15,000 crore. | |
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