FMC approves futures trading in iron ore
Multi Commodity Exchange of India and Indian Commodity
Exchange are set to launch iron ore futures contract after it
receives notification from the market regulator.
The commodity markets regulator Forward Markets Commission (FMC) has approved futures trading in iron ore, a top FMC official said.
"We have approved futures trade in iron ore. Commodity exchanges will launch four contracts initially," FMC Chairman B C Khatua said.
Multi Commodity Exchange of India Ltd (MCX) and Indian Commodity Exchange (ICEX) are set to launch iron ore futures contract after it receives notification from the market regulator.
This will be the world's first iron ore futures contract, whereby traders, miners and importers are expected to participate in a big way, ICEX's chief executive officer (CEO) Sanjay Chandel said.
The iron ore contract is export-grade as well, and hence lot of importers have also shown keen interest in the contract.
ICEX has joined hands with Federation of Indian Mineral Industries (FIMI) to promote an efficient iron ore futures market. "ICEX and FIMI would cooperate to create product awareness and promotion of iron ore and other minerals futures trading and derivatives," Chandel said.
ICEX had recently signed a Memorandum of Understanding (MoU) with the Singapore-based Iron Ore and Steel Derivatives Association (IOSDA), for the growth and development of iron ore and steel derivatives.
"MCX is ready with iron ore contracts. We have MOU in place with our Indian partner and we are talking to iron ore exporters and users, who will participate once we launch iron ore futures contract," MCX Managing Director and CEO, Lamon Rutten said.
India produces nearly 225 million tonnes iron ore a year and consumes 55 per cent of it, the rest being exported, mainly to China.
"We have approved futures trade in iron ore. Commodity exchanges will launch four contracts initially," FMC Chairman B C Khatua said.
Multi Commodity Exchange of India Ltd (MCX) and Indian Commodity Exchange (ICEX) are set to launch iron ore futures contract after it receives notification from the market regulator.
This will be the world's first iron ore futures contract, whereby traders, miners and importers are expected to participate in a big way, ICEX's chief executive officer (CEO) Sanjay Chandel said.
The iron ore contract is export-grade as well, and hence lot of importers have also shown keen interest in the contract.
ICEX has joined hands with Federation of Indian Mineral Industries (FIMI) to promote an efficient iron ore futures market. "ICEX and FIMI would cooperate to create product awareness and promotion of iron ore and other minerals futures trading and derivatives," Chandel said.
ICEX had recently signed a Memorandum of Understanding (MoU) with the Singapore-based Iron Ore and Steel Derivatives Association (IOSDA), for the growth and development of iron ore and steel derivatives.
"MCX is ready with iron ore contracts. We have MOU in place with our Indian partner and we are talking to iron ore exporters and users, who will participate once we launch iron ore futures contract," MCX Managing Director and CEO, Lamon Rutten said.
India produces nearly 225 million tonnes iron ore a year and consumes 55 per cent of it, the rest being exported, mainly to China.
