Axis Securities today said it has become the first subsidiary of a bank to launch trading in commodity derivatives with the Multi Commodity Exchange (MCX).
The Reserve Bank of India (RBI) last September had allowed banks to offer broking services to clients on Sebi registered commodity exchanges like MCX and NCDEX.
Axis Securities managing director and chief executive officer Arun Thukral said the move to allow bank-led brokers to offer commodity derivatives will not only expand the market volumes significantly but will also increase retail customer participation.
The trading was introduced under its flagship brand, Axis Direct, and all its existing and new customers will now be able to trade in 29 commodity futures and five options contracts, covering bullion, industrial metals, energy and agricultural segments.
"With the launch of commodities derivatives, we have expanded the choice for derivative traders to choose a wide spectrum of commodities, index or equity as an underlying," he told reporters today.
MCX managing director and chief executive officer Mrugank Paranjape said such an access to the hitherto excluded class of participants will surely enhance the breadth and depth of the market.