Mitigating High Price Volatility in Base Metals through Derivative Contracts..!

Mitigating High Price Volatility in Base Metals through Derivative Contracts..!

Awareness programme jointly organized by MCX & The Tirunelveli District Small & Tiny Industries Association (NELSTIA) in Tirunelveli

Tirunelveli (Tamil Nadu), March 22, 2016: Focused on its continuous efforts and initiatives in spreading financial literacy, and making more and more market participants aware of the benefits of commodity futures market, Multi Commodity Exchange of India Ltd (MCX), and The Tirunelveli District Small & Tiny Industries Association (NELSTIA) organized an educational seminar on commodity futures markets on March 21, 2016 in Tirunelveli.

The programme covered the entire array of policy, products and processes related to commodity futures market. There were brief sessions on the benefits of hedging, importance and need for risk management measures, role of commodity futures exchanges, clearing & settlement procedures etc.

Stressing on the importance of price risk management tools offered by MCX, Mr. T. G. Senthilvelan, Assistant Vice President-Business Development, MCX said, “Since the last few years, the global economic slowdown and uncertainty surrounding the India Rupee have had spillover effect on commodity prices in India, especially base metals in the form of higher volatility, which the hedging platform of MCX can effectively help manage. Further, the exchange has the most efficient and cost-effective platform for price discovery and price-risk management, which allows the market participants to manage their price exposures in the most economic manner possible.”

Mr. A. Anantha Sekar, President, NELSTIA said, “Looking ahead, focused education and awareness about the commodity futures market is need of the hour, and that is where commodity exchanges such as MCX have been playing a crucial role with a compelling presence throughout the country.”
“The need and demand for hedging among the SMEs, and MSMEs has been increasing as a result of rise in price volatility in base metals. Also, through these awareness initiative taken by commodity exchanges, participants are now realizing the importance of hedging and, the implications/impact, volatility may have on their businesses”, Mr. Sekar added. 
Mr. S. Sundaresan, Vice President, and Mr. Sanjay Gunasingh, Secretary of NELSTIA thanked MCX for organizing this educational programme for the association’s members.

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
Multi Commodity Exchange
Phone: +91 -22 67318888 Extn: 9282
Email: shivani.sharma@mcxindia.com

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