As a part of its ongoing efforts to educate and inform the commodity market participants about hedging price risks stemming from the volatility in commodity prices, Multi Commodity Exchange of India Ltd. (MCX) organised an awareness programme in association with Forward Markets Commission, on May 16, 2015 at Kathua, Jammu & Kashmir. It was organised for the stakeholders of the commodity ecosystem residing in and around Kathua.
Commodity price risk management assumes great importance for the commodity value chain participants, in view of the ongoing uncertainty and volatility in commodity prices, which is the outcome of factors such as, demand and supply fundamentals, geopolitical risks etc.
This edifying seminar gave the participants a detailed insight into the world of futures trading. The experts elucidated about the commodity futures market, which is a mechanism for effective price risk management and price discovery. Besides the functioning of Commodity Exchanges, the experts from MCX also explained the commodity market operations & market dynamics, fundamental principles of price risk management, and the regulatory perspective. The experts from MCX further highlighted the fact that The experts also elaborated on the impact of uncertainties and price fluctuations in commodity markets on business strategies and other economic activities.
While explaining about the benefits of trading on Exchange platforms such as MCX, Mr. Gaurav Kaushik, Senior Manager-Business Development, MCX said “It provides a transparent price discovery and hedging platform to the commodity stakeholders for trading futures contracts of different commodities. Furthermore, on the exchange, the fair-value prices are determined through active participation of a large number of stakeholders of the commodity value chain, who have access to information on the demand and supply conditions.”
The participants showed keen interest in the programme, and they opined that such programmes greatly benefits the commodity market participants and also gives them an opportunity to interact with experts in the field. The participants were keen to learn more about the various innovative futures contracts in the bullion, base metals and agri segment offered by the Exchange.
