Tuesday, May 5, 2009

Will MCX continue to rise along the hyper-growth trajectory it currently is on? deepak patra explores...

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Rs.3,600,000,000,000; and in just a month?!?


Since inception in November 2003, MCX has come a long way to become the number one commodity exchange in India, clocking a mind-boggling monthly turnover of Rs.3.6 trillion on average, and garnering a total market share of 72%. No doubt, MCX has added the much-needed user friendliness and global linkage to the Indian commodity trading scenario, thereby widening options and offerings for the traders. But this is just the start of a long journey, as Joseph Messy, MD & CEO, MCX tells B&E, “The Exchange has taken pride in providing the necessary support and regulatory infrastructure for orderly use and functioning of the market. In that respect, considering the size of Indian physical market, we have a long way to go to ensure that benefits of this market percolate to all sections of the supply chain.”

Inorganic growth strategies have always been key to MCX’s rapid growth. The comex never seem to miss an opportunity to forge a tie-up with a global comex – be it in any symbiotic form – and therefore, this either helps in increasing its product portfolio or grants it an easy entry into foreign territories. The comex has acquired a big stake in Middle East’s largest commodity bourse – the Dubai Gold and Commodities Exchange (DGCX), and is running exchange platforms in Mauritius through Financial Technologies India Limited (FTIL).


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Source :
IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and
Arindam Chaudhuri (Renowned Management Guru and Economist).


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