MCX to launch trading in 20 new commodities

Multi Commodity Exchange of India (MCX) is planning to launch trading in more than 20 new commodities including carbon and sulphur credits by the end of the current financial year. MCX currently trades in 80 commodities.

Jignesh Shah, managing director and CEO, MCX, said, "We are fully prepared to launch trading in carbon and sulphur credits. But for this, the Forward Contract Regulation Act needs to be amended. We are hopeful it will be done soon. A bill is likely to be tabled in the next session of the parliament in this regard. Once the amendment is through, we will launch trading in carbon credits."

Speaking to reporters after announcing the tie-up with the Indian Institute of Management, Bangalore (IIM-B) for conducting the Vista Online Wars, a series of real-time online games for management students, Shah said MCX will launch trading in over 20 new commodities to take its tally to over 100 commodities by the end of the current fiscal.

"We have identified 20 commodities including steel coils, non-ferrous metals like copper and nickel, energy, plantation crops like spices and other agriculture commodities and weather derivatives. We have applied for clearance from Forward Markets Commission to launch trading in these new commodities," Shah said.

MCX is already trading in steel bars and ingots. It would relaunch trading in steel with different specifications. Steel coils will be included during the year, he said.

MCX has already tied up with Chicago Climate Exchange and obtained license from them to trade in carbon credits for the Asia Pacific region.

"The carbon credit market is estimated to touch $300 billion in the next five years. Indian companies can play a leading role in carbon trading" he added.

The current daily turnover of MCX has crossed Rs 10,000 crore and it holds 55 per cent market share of the total trading volume of all the domestic commodity exchanges, which is around Rs 10 lakh crore.