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
URL: www.mcxindia.com
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