Natural gas futures trade picks up on MCX

Natural gas futures on the Multi Commodity Exchange (MCX) has recorded the second largest traded volume in the world after New York Merchantile Exchange (Nymex).

Launched on July 10 this year on the MCX, natural gas trades touched 5,46,150 lots, which is equivalent to 25% of Nymex volume of 23, 23,000 lots.

The number of participants has also increased to 514 per day in August 2006 from 250 per day in July 2006. Daily average turnover of natural gas futures at MCX has increased to Rs 436.91 crore in August from Rs 103.30 crore in July.

"MCX has provided a platform to players in the gas eco-system to hedge their price risk," Jignesh Shah, managing director and CEO of MCX, said.