commodityexchange-111210052617-phpapp02

7/27/2019 commodityexchange-111210052617-phpapp02

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CHENNAI3rd Floor, Creative Enclave,

148-150, Luz Church Road,

Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821

BANGALORESuite 920, Level 9,

Raheja Towers,

26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400

COIMBATOREBB1, Park Avenue,

# 48, Race Course Road,

Coimbatore - 641018.

Tel: +91 - 422 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

What are Commodities?

In economics, a commodity is the

generic term for any marketable itemproduced to satisfy wants or needs.

Economic commodities comprise

goods and services.


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Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821


Raheja Towers,

26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400




Tel: +91 - 422 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Commodity Exchange

a commodity exchange is defined as an association,

or alternatively a company, as well as any corporate

body that organizes trading in commodities. Earlier

the commodity exchange was more like an open

market place where traders would call their bids andpurchase commodities.

A commodities exchange is an exchange where

various commodities and derivatives products are

traded. Most commodity markets across the worldtrade in agricultural products and other raw

materials.


4/18



Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821


Raheja Towers,

26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400




Tel: +91 - 422 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

cont

Commodities exchanges usually trade futures

contracts on commodities, such as trading contracts

to receive something, say corn, in a certain month. A

farmer raising corn can sell a future contract on his

corn, which will not be harvested for severalmonths, and guarantee the price he will be paid

when he delivers; a breakfast cereal producer buys

the contract now and guarantees the price will not

go up when it is delivered. This protects the farmerfrom price drops and the buyer from price rises.


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Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821


Raheja Towers,

26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400




Tel: +91 - 422 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Commodity Market

Commodity markets are markets

where raw or primary products are

exchanged. These raw commodities aretraded on regulated commodities

exchanges, in which they are bought

and sold in standardized contracts.


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Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821


Raheja Towers,

26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400




Tel: +91 - 422 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Early History

Commodity exchanges began in the

middle of the 19th century, when

businessmen began organizing market

forums to make buying and selling ofcommodities easier. These market

places provided a place for buyers and

sellers to set the quality, standards,and establish rules of business.


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Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821


Raheja Towers,

26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400




Tel: +91 - 422 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Commodity Exchange and

Stock Exchange

The basic difference between the

commodity exchange and stock exchange

is that while in commodity exchange non-

financial commodities i.e. agro productssuch as castor, groundnut, sesame etc. and

non agro products such as aluminum, zinc,

nickel etc. are traded. However in a stock

exchange all financial products are tradedsuch as stocks, indexes, interest rate,

government securities etc. are traded.


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Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821


Raheja Towers,

26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400




Tel: +91 - 422 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Commodity Futures

Futures are standardized agreements

between a buyer and a seller to exchange

a pre-agreed quantity of an asset of pre-

specified quality: at a specific price, and at a pre-specified

future date

If the underlying asset is a commodity,

the futures are called commodity futures.


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Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821


Raheja Towers,

26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400




Tel: +91 - 422 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Background

The future commodity trading has long history in India and

started as early as 1857 .

Due to ongoing global and domestic reforms in agriculture

and allied sectors, the government is reducing its direct

market intervention and encouraging private participation

based on market forces

This has led to increased exposure of agricultural produce

to price and market risks which consequently emphasizes

the importance of future markets for price discovery and

price risk management.

As a result, the Government of India issued notifications on

April 1, 2003 and permitted futures trading in a wide range

of agricultural commodities except options trading.


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Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821


Raheja Towers,

26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400




Tel: +91 - 422 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Regulation

Forward Controls (Regulation) Act, 1952

Act applicable to all trades where delivery wasafter more than 11 days.

Forward Markets commission regulatory

body .


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Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821


Raheja Towers,

26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400




Tel: +91 - 422 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Commodity exchange India

At present, there are 3 national level commodities

exchanges namely National Multi-Commodity

Exchange of India (NMCE), National Commodity and

Derivatives Exchange Ltd (NCDEX) and Multi

Commodity Exchange of India Ltd (MCX) and 21regional exchanges allowed for derivatives trading of

agricultural commodities.

The 3 major national commodity exchanges are: National Commodity and Derivatives Exchange

Limited

Multi Commodity Exchange of India Ltd

National Multi Commodity Exchange of India Ltd


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Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821


Raheja Towers,

26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400




Tel: +91 - 422 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

National Commodity and Derivatives

Exchange Limited - NCDEX:

This is an online multi-commodity exchange that is

promoted and professionally managed by ICICI Bank

Limited, Life Insurance Corporation of India, National

Bank for Agriculture and Rural Development, National

Stock Exchange of India Limited , Punjab National Bank,CRISIL Limited, Indian Farmers Fertiliser Cooperative

Limited and Canara Bank.

NCDEX, located in Mumbai, is a public limited company,

which was incorporated on 23rd April 23 2003. this wasdone under the Companies Act, 1956. on 9th May 2003,

it was given its Certificate for Commencement of

Business, and it started its business operations on 15th

December 2003.


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Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821


Raheja Towers,

26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400




Tel: +91 - 422 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Multi Commodity Exchange of

India Ltd - MCXMulti Commodity Exchange of India Ltd. (MCX), is a state-of-

the-art electronic commodity futures exchange. The

demutualised Exchange has permanent recognition from the

Government of India to facilitate online trading, and clearing

and settlement operations for commodity futures across the

country. The Exchange operates within the regulatoryframework of the Forward Contracts Regulation Act, 1952

(FCRA, 1952) and regulations there under.

It was established in 2003 and is based in Mumbai. The

turnover of the exchange for the fiscal year 2009 was US$ 1.24trillion, and in terms of contracts traded, it was in 2009 the

world's sixth largest commodity exchange.


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Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821


Raheja Towers,

26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400




Tel: +91 - 422 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

National Multi Commodity

Exchange of India Ltd NMCEIL

The National Multi-Commodity Exchange of India Limited, is regarded

as the first de-mutualised online multi-commodity exchange that has

been established in the country. It was incorporated on 20th

December 2001, but began business operations on 26th November

2002.

It promoting and managing institutions include:

Central Warehousing Corporation CWC

National Agricultural Cooperative Marketing Federation of India

Limited NAFED

Gujarat Agro Industries Corporation Limited - GAIC

National Institute of Agricultural Marketing - NIAM

Gujarat State Agricultural Marketing Board - GSAMB

Neptune Overseas Limited


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Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821


Raheja Towers,

26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400




Tel: +91 - 422 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Role of Commodity Exchange

Platform for hedging and speculation

Standardization of futures

Facilitation of real price discovery Ensuring fair play

Track of business transacted

Fixing rules for trading Dissemination of information


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Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821


Raheja Towers,

26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400




Tel: +91 - 422 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Structure of Indian Commodity

Futures Exchanges


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Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821


Raheja Towers,

26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400




Tel: +91 - 422 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

FOCUS

Why do we need this market?

Price Stability

Liquidity and Volume

Integrated Agricultural Market

Risk trading by the small formers


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Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821


Raheja Towers,

26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400




Tel: +91 - 422 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

commodityexchange-111210052617-phpapp02

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