Cotton body to tie up with BSE for futures trade

The East India Cotton Association is tying up with the Bombay Stock Exchange to increase the volume dealt in cotton future.

"BSE has software and hardware technology for futures trade, and we may enter into a contract for platform usage," said O P Agarwal, the cotton body's executive director.

"We thought of taking assistance of BSE because cotton futures trade could never achieve sizeable volume in the country," he told said today. Only EICA has permanent official recognition for futures trading, he said.

Two new EICA futures contracts will be launched shortly, he said. EICA board has approved new contracts for V-797 and Shankar-6 varieties.

Traders didn't show interest in the earlier EICA futures contract namely 26MM. "However, as some traders suggested changes in length of term (period) in new contracts, EICA is re-structuring them."

"Modified contracts will be presented for EICA board's approval by end-March," Agarwal said.