The Indian Commodity Exchange Ltd, the commodity derivatives trading platform promoted by MMTC and Indiabulls, plans a tie-up with existing spot trading platforms for online sale of agri and non-agri commodities.
“In my opinion, a tie-up with an existing exchange will be a better idea than setting up a new facility and competing for the same space when still at a nascent stage,” said Sanjay Chandel, CEO of ICEX, without spelling out any name he was planning to associate with.
Spot online trading is in a rudimentary stage and yet to evolve as a means of revenue generation. Therefore, launching a separate platform wouldn’t be right, Chandel said, when asked if ICEX was planning to do so.
“We, however, have not yet started working in that direction (of a tie-up),” he added.
Both MCX and NCDEX are linked with spot trading platforms. MCX is associated with the National Spot Exchange Ltd (NSEL), promoted by Financial Technologies, while NCDEX has floated a separate spot platform, NCDEX Spot.
The National Agriculture Produce Marketing Committee (APMC) of India Ltd, linked with Ahmedabad-based NMCE, is considering launch of spot trading with cotton and castor seed by August-end.
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Anjani Sinha, MD and CEO of the country’s largest spot trading platform, welcomed the idea by saying, “It will be a win-win for all and promote commodity trade as a united effort through online platforms.”
Each commodity exchange will make its own members and take the membership fee as revenue.