In its efforts to continue to spread awareness about hedging commodity price risks, Multi Commodity Exchange of India Ltd. (MCX) in association with the Forwards Markets Commission (FMC) and Patliputra Sarrafa Sangh organized an awareness programme at Patna on January 14, 2015. The interactive session focused on fundamentals of bullion and educating market participants on how they can benefit from trading on a commodity futures platform. The spokespeople also explained about the about the commodity markets and the importance of commodity exchanges in India.
During the course of the programme, Mr. Vibhor Tandon, Assistant Vice President-Business Development, MCX stated, “By hedging their price risks on the Exchange platform, the bullion value chain participants can safe guard themselves from the unanticipated price movements and volatility in bullion prices. Besides, MCX offers different variants of gold futures contracts with denominations varying from 1kg to as small as 1gm to suit various participants’ hedging needs. Similarly, in silver, MCX offers contracts of denominations varying from 30 kg to 1 kg. These innovative contracts enable the hedgers to effectively manage the impact of price fluctuations and control their risks efficiently.”
“Significantly, while the futures contracts in the bullion segment at MCX closely mirror international prices, the contracts are traded in Indian rupee. Hence, the currency risk is naturally mitigated while hedging even an international commodity like gold and silver on the Exchange platform.”
Mr. Binod Kumar, President, Patliputra Sarrafa Sangh said, “We thank and appreciate FMC and MCX for organizing this commodity awareness programme for our association members. The experts briefed us about the various benefits of trading on a regulated commodity derivatives exchange such as MCX. They also educated us about the various futures contracts in the bullion segment offered by the commodity exchanges that are useful risk management tools. Furthermore, they stressed on how we can use these contracts to hedge our price exposures against high volatility in bullion prices and changing commodity market dynamics.”
About MCX:
Having commenced operations on November 10, 2003, Multi Commodity Exchange of India Limited (MCX) is India’s first listed, national-level, electronic, commodity futures exchange with permanent recognition from the Government of India. MCX offers the benefits of fair price discovery and price risk management to the Indian commodity market ecosystem. Various commodities across segments are traded on MCX. These include bullion, energy, metals and agri commodities. The exchange has forged strategic alliances with various Indian and International commodity exchanges and business associations. 
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