Page 7 - Commodity Derivatives

MCX invites bids for augmentation of commodity derivatives platform

The Multi Commodity Exchange of India is planning to implement a new advanced Commodity Derivatives Platform (CDP) for its trading and clearing related services

Sebi eases norms for disposal of physical gold, silver assets held by MFs

In a circular, the Securities and Exchange Board of India (Sebi) said that disposal time is now 180 days for physical gold and silver assets

Margin calls triggered in crude oil led to across-the-board selling

The margin on crude oil, which was set at 16.3 per cent on friday, kept on rising today with MCX imposing margins of up to 60%

Sebi directs comexes to do performance review of commodity contracts

The move is important because it will bring to light the utility, hedging and other key aspects of all contracts

Tax benefits for traders as CBDT approves NSE's commodity derivatives

Exchange gets 'Recognised Association' status, due to which participants can set off losses in commodity derivatives against business gains

Sebi advances margins determination period for commodity derivatives

Effective April 1, 2020, cut off time shall be kept at 5 pm for the purpose of determining minimum threshold of margins to be collected by members from their clients

Sebi lets PMS into commodity derivatives a day after setting rules for MFs

No participation without client agreements; custodian a must; sale of physical delivery based on agreed timeline between PMS and client

MFs' initial response to new commodity derivatives norms likely to be muted

Long-term liquidity may not improve in current framework

Sebi directs commodity exchanges to align trading and delivery lot sizes

The regulator has asked exchanges to put in place an adequate mechanism to ensure that no participation is put to disadvantageous position

BSE gets Sebi's approval to increase trading hours in commodity derivatives

The BSE marked its entry into the commodity derivatives segment with gold and silver contracts on October 1, 2018

Commodity options turnover fell 66% as traders switched to equities: Sebi

Experts suggest more awareness is needed to bring new participants to this segment

Commex rules to apply to commodity derivatives on stock exchanges: Sebi

Earlier this month leading exchanges, BSE and NSE received Sebi's approval to launch the commodity derivatives segments from October 1

Foreign companies get Sebi nod to hedge in commodity derivatives

Sensitive commodities excluded from rule; move seen positive for segment

Long wait before trading in commodity index derivatives takes off

Sebi will have to first finalise guidelines for common standards in preparing commodity indices, after which there will be regulations on trading

Sebi tweaks risk management norms for commodity derivatives segment

In a circular, Sebi said it has been decided to align norms related to BMC and liquid networth

Sebi allows voluntary exit of IPSTA, RCX as commodity derivative bourses

The boards of the two exchanges had resolved to take formal voluntary exit as recognised commodity exchanges

Tread cautiously

MFs' entry into commodity derivatives is a risky bet

Sebi proposes to allow MFs and portfolio managers in commodity derivatives

This is the second move by Sebi to allow institutional participants in the commodity derivatives market

Commodity derivatives markets caught in a downturn

Commodity derivatives market volumes and condition of its stakeholders is at its nadir with annual aggregate volumes lowest since 2010 and fell to just third of its peak seen in 2011-12 at Rs.178.5 trillion. There are reasons for market to be pessimistic and hence those who are still in market are looking for a messiah. New products and new players that regulator has initiated allowing entry could rescue them from falling business but real messiah as players say will be cost of trading and regulatory/compliance cost that shall come down.Experts are not hoping for past glory coming back where over a million people in the commodity derivative eco-system were getting job but a cautious tone for revival seems to have been set. Imposition of commodity transaction tax on commodity derivatives since July 2013, followed by NSEL crisis and crashing commodity prices after that have all played their role in taking wind out of sail of fast growing commodity derivatives.However consolidation ...

Hedge funds may be allowed in non-farm commodity derivatives initially

Following recommendations by its advisory committee Commodity Derivatives Advisory Committee (CDAC) Sebi has proposed to allow category-3 Alternative Investment Funds typically known as hedge funds in commodity derivatives. Market players, and sources involved in the discussion process said that entry of hedge funds, when implemented, will help bring liquidity in commodity futures and options. The move is a beginning to bring institutional investors in commodity derivatives. However, initially they will be allowed only in non-agri commodities. In agri commodities, still there are possibilities of government interventions and sensitivity of the segment.Hedge funds, be they local or overseas, have cheap funds while industry players who are actually hedging their commodity price risk on futures platform borrow funds. 'Globally hedge funds play in commodities is ten times bigger than in equity and many times they move the market. In India they will be big volume provides. We can see ...