MCX to launch natural gas futures soon

The Multi Commodity Exchange (MCX) said it would launch natural gas futures contracts in a month and emphasised that trading in futures was not in any way responsible for the rising prices of pulses and wheat.

"The gas futures would start giving price signals and be an effective instrument for risk management. Futures markets are just reflection of the reality and it gives a signal on the price movement," said Jignesh Shah, managing director, MCX.

The entry of banks, mutual funds and FIIs would lend greater credibility and liquidity to the commodity markets. It would bring in more and more qualified workforce into commodity trading.

There cannot be any problem in going ahead with this as our exchanges are well established, said Shah.

On the FMC directive asking commodity exchanges to set up investor protection fund, Shah said the exchanges had submitted their feedback and once the policy was conceptualised, the fund would be constituted.

On the possible ban on futures trading of narrow commodities like guarseed, guargum, mentha oil, Shah said the ultimate decision would be taken by the FMC and the exchange would abide by it.