MCX to launch trading in 20 new commodities

Multi Commodity Exchange of India (MCX) is planning to launch trading in more than 20 commodities, including carbon and sulphur credits, by the end of FY07.

"We are fully prepared to launch trading in carbon and sulphur credits but this requires an amendment to the Forward Contract Regulation Act," Jigesh Shah, MD & CEO of MCX, said. He was hopeful that it would be done soon as the bill is likely to be tabled in the next session of the Parliament.

"We have identified 20 commodities including steel coils, copper and nickel, energy, plantation crops and other agriculture commodities and weather derivatives," he said.

The company has already applied for the necessary clearance from the Forward Markets Commission (FMC).

MCX has tied up with Chicago Climate Exchange and obtained licence from them to trade in carbon credits for the Asia Pacific region. "The carbon credit market is estimated at $300 billion in the next five years. Indian companies can play a leading role in this market," he said.