ICEX set to launch iron ore futures contract by Dec

Indian Commodity Exchange (ICEX) is expected to launch iron ore futures contract by December after it receives permission from the market regulator Forward Markets Commission (FMC), a top exchange official said here.

"We are awaiting FMC approval, which is expected shortly. Within month's time after the approval, we will be able to launch iron ore contract," ICEX's Chief Executive Officer (CEO) Sanjay Chandel told PTI here.
   
This will be the world's first iron ore futures contract, whereby traders, miners and importers are expected to participate in a big way, Chandel said, adding that this iron ore contract is export grade as well, therefore lot of importers have also shown keen interest in the contract.
   
ICEX has joined hands with Federation of Indian Mineral Industries (FIMI) to promote an efficient iron ore futures market.
   
"ICEX and FIMI would cooperate to create product awareness and promotion of iron ore and other minerals futures trading and derivatives," Chandel said.
   
"MMTC, as a major exchange partner on the ICEX platform, will add its physical market expertise for iron ore futures as it is well connected with this segment of iron ore in India," he added.

The exchange also plans to start trading a gold coins futures contract to cater traders in smaller cities in association with the Bombay Bullion Association in the next two months.
   
"We will shortly seek permission from FMC to launch 8, 10 and 100 grams gold coin contracts. We are in the process of creating a platform for major refiners on which they can offer their products. We expect more Indian refiners to participate in the delivery process," Chandel said.
   
The exchange at present offers futures trading of two gold contracts of 1 kilogram and 100 grams denominations.
   
Replying to a query on future plans, Chandel said, "We plan to develop our own niche. We are working on several unique products in agri as well as non-agri space, but new in the market," Chandel said without divulging the details.
   
ICEX, which has been co-founded by Indiabulls Group along with state-run trading firm MMTC, has become the third largest commodity exchange with daily average turnover of Rs 1,500 crore, followed by MCX and NCDEX.