Effective
use of Derivative Tools for Price Risk Management in Base Metals
Educational Seminar organized byMCX,IamSMEofIndia&Religare
Commodities in Faridabad
Aimed at
disseminating in-depth knowledge about the derivatives market and its benefits
among SMEs and MSMEs,Multi Commodity Exchange of India Ltd. (MCX), Religare
Commodities,andIntegrated Association of Micro, Small & Medium Enterprises
of India (IamSMEofIndia) jointly organized an educational seminar on February
8, 2016 in Faridabad(Haryana).
This comprehensive seminar gave the participants an overview about the
commodity futures market, benefits of hedging, importance and need for risk
management measures, advantages of trading on a regulated commodity exchange
platforms, and the regulatory perspective.
While making a presentation on price risk management to the members of
IamSMEofIndia, Mr. Sanjay Gakhar, Vice
President-Business Development, MCX said, “Hedging is absolutely critical
for stabilizing incomes of organizations and individuals in today’s environment
of persistent high volatility in commodity prices. Hence, in an increasingly
globalized and competitive market, it is important for base metal stakeholders
to manage their price risks through commodity futures contracts.”
Mr. Himanshu
Arora, an analyst with Religare Commodities, gave
a macroeconomic view on commodities and currencies. He also touched upon the
important fundamental factors that impact the base metals segment.
Ms. Rashmi
Nihalani, Assistant Vice President-PKMT, MCX said, “Increasing
transparency of exchange traded prices and MCX’s efforts to disseminate
awareness about commodity futures will definitely improve the use of commodity
derivatives as the tool of risk management and thereby making it necessary for
all participants to manage their raw materials price risks.”
“MCX offers efficient base metals futures trading platform that can be
used by the base metal value chain participants to manage their risks. Further,
while base metal futures traded on the Exchange platform have a high
correlation with the international prices, the contracts are traded in Indian
rupee. Hence, the currency risk is mitigated while hedging on MCX platform,
avoiding the risk encountered in hedging on international platforms”, she
stated.
Thanking MCX for organizing the interactive seminar for its members, Mr.Rajiv Chawla, Chairman,
IamSMEofIndia said, “I truly appreciate MCX’s commitment towards spreading
financial literacy and awareness on commodity futures market in India by
educating the SMEs and MSMEs through such programmes.”
“Considering the volatility in base metal prices, SMEs confronted with
increasing and persistent uncertainty in raw material prices need to recognize
the criticality of commodity price risk management as an essential part of
their business operations”, Mr. Chawla added.
The seminarwitnessed a strong participation from the members of IamSMEofIndia
and the queries put forward by them were effectively answered by the experts.
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
international exchanges, as well as Indian and international trade
associations. For more information about MCX and its products visit www.mcxindia.com.
For further
details, contact:
Shivani Sharma
Manager - Communications
Mobile: +91 98333 76243
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