Awareness programme jointly organized by MCX & bullion associations in Surat

Focused on the benefits of managing bullion price exposures with the effective use of hedging tools offered by commodity exchanges, Multi Commodity Exchange of India Ltd (MCX), conducted awareness programmes on commodity futures market in Surat (Gujarat). These educational programmes were organized in association with Adajan-Rander Jewellers Association, and Surat Jari Manufacturers Association on January 22, 2016, and January 23, 2016 respectively.

This programme gave the participants an overview about the commodity futures market, benefits of hedging, importance and need for risk management measures, role of commodity futures exchanges, and the regulatory perspective.

The market participants were explained about the benefits and advantages of trading on a regulated commodity exchange platforms such as higher liquidity, transparent pricing, central clearing, robust risk management and surveillance system. The experts from MCX further elaborated about the bullion futures contracts offered by the Exchange, which enable the hedgers to effectively manage the impact of price fluctuations and control their risks efficiently.

In a detailed presentation the bullion stakeholders were apprised about different variants/denominations of gold and silver futures contracts to suit various participants? hedging requirements.

While briefing about the need for risk management and importance of commodity futures market, Mr. Ayub Malek, Senior Manager- Business Development, MCX said, ?The commodity futures contracts offered by the Exchange serve two important economic utility functions of price discovery and price risk management thereby protecting the commodity market participants from adverse price movement.

Mr. Rakeshbhai Lodha (Jain), President, Adajan-Rander Jewellers Association said, ?In today?s scenario where uncertainity and volatility cannot be ignored in reference to the bullion prices, the safest way for the bullion stakeholders is to hedge on commodity exchanges such as MCX in order to protect their margins and manage price risk.?

Mr. Kantibhai Jariwala, President, Surat Jari Manufacturers Association said, ?In recent years, with the globalisation of the Indian economy and sensitivity of prices of commodities to global factors, commodities have witnessed heightened price volatility. This has exposed all commodity stakeholders, including the bullion value chain participants to price shocks. This has definitely prompted a growing demand for hedging among commodity market stakeholders.?

Company :-Multi Commodity Exchange of India

User :- shivani sharma

Email :-shivanisharma1979@gmail.com

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