NCDEX, a leading agri-commodity exchange, is witnessing a big rise in the average daily trading volume (ADTV) of non-agricultural commodities, led by steel and crude oil contracts.
Addressing presspersons here on Thursday, R. Ramaseshan, Managing Director and CEO, said the ADTV for crude had risen to Rs. 277 crore in September from Rs. 6.57 crore in April.
The decontrol measures had reduced certainty in prices and had made hedging imperative, Mr. Ramaseshan said.
The total traded value in metals (other than bullion) had grown by 72 per cent till September 15 in the current financial year as compared to the same period in the previous year, he said.
The exchange had registered a total traded value of Rs. 500,000 crore till September 15, 2010 against Rs. 387,000 crore in the year-ago period, Mr. Ramaseshan said.
According to Vijay Kumar, Chief Business Officer, the daily trading volume in crude was in excess of 1.5 million barrels. “As more fuel groups free themselves from the yoke of administered prices, NCDEX can expect more volumes in crude futures contract”, he said.
It would strengthen the focus on non-agricultural products with a concentrated effort to broaden the participation. The exchange was expecting more volumes in steel and crude futures in the coming months, Mr. Vijay Kumar said.
With the ban on sugar futures coming to an end NCDEX had sought permission from Forward Markets Commission, the regulatory authority, to reintroduce sugar futures, he said.
NCDEX which commenced operations in December 2003, offers futures trading in 47 commodities in agriculture, energy, metals, plastics and carbon credits.
