MCX overtakes NCDEX in turnover

[love_gundu22]

MCX overtakes NCDEX in turnover

MCX has overtaken NCDEX to become India`s largest commodity exchange, reports Economic Times.

The turnover on MCX has crossed a record Rs 100 lakh crore.

NCDEX, still the country`s premier exchange for food and fibre crops, dropped to second place after the farm futures were gagged by the government with position limits and high margins.

Energy, metals and bullion traders put Rs 9.99 lakh crore in the MCX trading ring in six months while punters in cereals, spices, fibre and guar managed to trade in contracts worth just Rs 5.45 lakh crore on the NCDEX.

The daily volume at NCDEX has slipped to sub Rs 3,000 crore levels in the last few days from the peak volume of Rs 8,000 crore in March this year.

From a monthly turnover of Rs 1.5 lakh crore in May, the volume on NCDEX has shrunk to Rs 94,125 crore by October.

In contrast, the turnover on MCX is now touching Rs 9,000 crore daily on the back of a boom in bullion, energy and metals.

Between May-Oct. 2006, a huge 92.6% of MCX`s turnover came from high-value energy, metals and bullion. Farm produce provided the remaining turnover.

On NCDEX, 82% of the turnover came from food and fibre crops. Bullion trading accounted for the rest.

Interestingly, though both the exchanges are clearly the leaders in different product segments in the Indian commodity market, the mix is constantly changing. For instance, in May, bullion provided 81% of MCX turnover. By October, this had dropped to 69%.

Even so, the share of food and fibre crops in NCDEX`s total turnover has increased as the base has shrunk. The share of trading in farm commodities in the total turnover has increased from 79% in May to 85% in October.

According to NCDEX officials, the bar on trading limits, the exceptionally high margins on agricultural contracts and ambiguity on stock limits under the essential commodities act have all contributed towards a distinct slowdown in the farm futures.

[ankit_chan]

Thanks for the figures..

But you know MCX was always ahead of NCDEX..

I am a broker in both of these.. You won't beleive that MCX is much much better compared to NCDEX.. May it be contract size, margin, exposure, or may it be software itself.. MCX is better than NCDEX..

[love_gundu22]

more updates

MCX is now commex No 1

It’s been a year of new records. MCX has overtaken NCDEX to become India’s largest commodity exchange. Turnover on MCX has now crossed a record Rs 10 lakh crore. NCDEX, still country’s premier exchange for food and fibre crops, dropped to second place after farm futures were gagged by the government with position limits and high margins.

Energy, metals and bullion traders put Rs 9.99 lakh crore in the MCX trading ring in six months while punters in cereals, spices, fibre and guar managed to trade in contracts worth just Rs 5.45 lakh crore on the NCDEX.

Daily volume at NCDEX has slipped to sub-Rs 3,000 crore levels in the last few days from peak volume of Rs 8,000 crore in March this year. From a monthly turnover of Rs 1.5 lakh crore in May, NCDEX has shrunk to Rs 94,125 crore by October. In contrast, turnover on MCX is now touching Rs 9,000 crore daily on the back of a boom in bullion, energy and metals.

Between May-October 2006, a huge 92.6% of MCX’s turnover came from high-value energy, metals and bullion. Farm produce provided the remaining turnover. On NCDEX, 82% of the turnover came from food and fibre crops. Bullion trading accounted for the rest.

Interestingly, though both the exchanges are clearly leaders in different product segments in the Indian commodity market, the mix is constantly changing. For instance, in May, bullion provided 81% of MCX turnover. By October, it had dropped to 69%. Metals which were 2% and energy 3% in May, rose to 13% and 12% respectively in October as volatility brought more traders to the exchange.

Agri-commodities, which were a large component with a 14% share in May, got reduced to 6% by October. On NCDEX, bullion dropped from 21% in May to 15% in October.

Even so, the share of food and fibre crops in NCDEX's total turnover has increased as the base has shrunk. The share of trading in farm commodities in its total turnover has increased from 79% in May to 85% in October.

According to NCDEX officials, the bar on trading limits, the exceptionally high margins on agricultural contracts and ambiguity on stock limits under the Essential Commodities Act have all contributed towards a distinct slowdown in farm futures. “

We have now taken a conscious decision to increase our volumes in metals and energy. We realise that farm futures will always remain politically sensitive in an agrarian economy and thus be constantly prone to political intervention,” they added.