Programmes on Hedging Organised at Bhopal and Gwalior for Bullion Stakeholders

Bhopal/Gwalior (Madhya Pradesh), August 26, 2015: Carrying on with its incessant efforts to create awareness about commodity futures market among the commodity stakeholders, Multi Commodity Exchange of India Ltd (MCX), organised awareness programmes at Bhopal, and Gwalior on August 22, 2015, and August 23, 2015 respectively. The programmes organized for members of Shri Sarafa Association, Bhopal; and Sona Chandi Vyapar Sangh, most of whom were jewellers, focused on the benefits of hedging bullion price exposures, and price discovery mechanism.

While the programme was organized to create awareness and enhance knowledge among the commodity stakeholders about the commodity futures market in India, it also served to explain in detail all the technicalities associated with the working of a commodity exchange— with respect to the products, price discovery, transparency and risk management mechanism in trading and settlement of transactions. The experts from MCX through a detailed presentation explained the concept of Hedging and its benefits to the market participants. 

The experts further explained about the importance and need for risk management measures, role of commodity futures exchanges, historical perspective and growth of commodity markets in India, and diverse and innovative product basket offered by MCX among others.

Mr. Jai Mohan Agarwal, President, Shri Sarafa Association said, “As we all know, due to the persistent uncertainty in the global economy the international commodities including gold and silver continue to remain volatile, exposing the bullion stakeholders to the price risk. This is where the commodity exchanges such as MCX come into play, these exchange platforms can be used to mitigate the price risk by locking in the future prices. These exchanges provide a transparent price discovery and hedging platform for trading futures contract of different commodities.”

Mr. Ramji Das Garg, President, Sona Chandi Vyapar Sangh said, “In the emerging paradigm of the commodity futures market in India, exchanges such as MCX have been, and will continue to serve the hedging interest of the commodity stakeholders.”

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