MCX Commodity Market in India

MCX Stock Exchange Ltd (MCX-SX), India's new stock exchange, appositely reflects how the world's most evolved and hi-tech new-generation exchanges should look like in future. With cutting-edge technology, world-class services and cost optimization, MCX-SX has altered the face of the Indian financial markets.

Within a few years of its launch, MCX-SX has proved its mettle as the thought leader and innovator of the industry by introducing innovative services and pioneering market development initiatives. Recognized by the market regulator Securities and Exchange Board of India, MCX-SX currently has more than 700 members and trading terminals in more than 600 cities and towns across India. (Free Stock Tips)

Through deployment of state-of-the-art technology and global best practices for regulatory compliance and investor protection, MCX-SX enables importers, exporters, investors, corporations and banks to hedge their currency risks with greater transparency and safety. Furthermore, it guarantees settlement of all transactions, through its clearing corporation (MCX-SX Clearing Corporation Ltd), which enhances safety by eliminating the counterparty risk.

MCX-SX believes in "Systematic development of markets through Information, Innovation, Education and Research." Its constant endeavor, therefore, has been to ensure that its nationwide electronic trading platform is used by market participants more extensively and effectively. MCX-SX is the first stock exchange in India to launch pioneering market development initiatives and join hands with India's reputed industry & trade bodies and educational institutions to conduct awareness and financial literacy programs for financial literacy and financial inclusion.

MCX-SX's currency derivatives segment offers an India-wide electronic platform for trading in currency futures under the regulatory control of Securities and Exchange Board of India (SEBI) and Reserve Bank of India (RBI).

Ever since the dawn of civilization commodities trading have become an integral part in the lives of mankind. The very reason for this lies in the fact that commodities represent the fundamental elements of utility for human beings. Over the years commodities markets have been experiencing tremendous progress, which is evident from the fact that the trade in this segment is standing as the boon for the global economy today. The promising nature of these markets has made them an attractive investment avenue for investors. Earlier investors invested in those companies, which specialized in the production of commodities. This accounted for the indirect investments in commodity assets.

The commodity based products offer a huge array of benefits that include offering risk-return trade-offs to investors, providing information on market trends and assisting in framing asset allocation strategies. Commodity investments are always considered as defensive because during the times of inflation, which adversely affects the performance of stocks and bonds, commodities provide a defense to investors, maintaining the performance of their portfolios.

Commodity markets have a huge potential in the Indian context particularly because of the agri-based economy. With the government's initiative for agricultural liberalization, commodities' trading in India has gained increased momentum in activities. To increase the efficiency of the markets the Forward Markets Commission (FMC), the governing body of commodities trading in India has taken several initiatives for the establishment of national level multi-commodity exchanges in India.