National Commodity and Derivatives Exchange Limited (NCDEX) is planning to grow volumes in metal futures in a bid to diversify its business model. The exchange is also likely to tweak with the present metal contracts to make it more popular among the traders.
“We do have existing metal contracts that are not as liquid as expected. So, we will tweak with those contracts, maybe from lot size or quality perspective, to make it popular to drive volumes,” said R Ramaseshan, managing director and chief executive officer of NCDEX.
NCDEX is predominantly an agri-commodity exchange with a 85 per cent market share as of now. However, the exchange is trying to tweak the ratio of agri-volume to metal futures volume to de-risk its business model. “We want to de-risk our business model with diversification to metal contracts,” he added.
The exchange, which had a turnover of Rs 3.87 lakh crore last fiscal, has attained a turnover of Rs 5 lakh crore by September 2010, he said.
