Silchar (Assam), January 05, 2016: Multi Commodity Exchange of India Ltd (MCX) and Nikhil Assam Swarna Silpi Samity (NASSS) organised an educational and insightful programme on the benefits of hedging at Silchar on January 04, 2016. While the programme was targeted towards creating awareness on hedging bullion price exposures, it also aimed at increasing the participation of market players from the bullion industry on commodity futures exchanges in India.
Members present on the dias, Mr. Nitai Chandra Mazumder, President, NASSS (Silchar Branch), Mr. Prashanto Roy, Gen Secretary, NASSS (Guwahati Branch), Mr. Gautam Banik, President, NASSS (Jorhat), Mr. Parimal Sarkar, President, NASSS (Tinsukia) and, Mr. Firoz Khan, Gen. Secretary,NASSS (Tinsukia), spoke elaborately, and expressed their views on the benefits and importance of commodity futures market in India.
The experts addressing the forum focused on various topics including, functioning of commodity exchanges, the benefits of commodity futures for trading, and price risk management. They further highlighted the advantages of an efficient derivatives market alongside communicating the benefits of hedging and price discovery offered by commodity futures market.
During the seminar there were sessions on Introduction to Commodity Derivatives, History of Commodity Derivatives Markets, Regulation, Trading and Settlement, and Economic Benefits of Commodity Derivatives, among others.
While making a presentation, Mr. Vibhor Tandon, Assiatant Vice President-Business Development, MCX said, “The Exchange offers standardised commodity futures contracts on its platform, which provide an efficient trading environment for ideal price discovery. Moreover, for internationally benchmarked commodities such as gold, and silver, MCX’s platform enables domestic participants to trade in Indian currency.”
“Contracts with different lot sizes in both gold and silver—gold mini, gold petal, gold guinea, silver mini and silver micro—are available for trading on the Exchange, to accommodate the needs of varied market participants to hedge their risks”, he stated.
Mr. Nitai Chandra Mazumder, President, NASSS (Silchar Branch) said, “In the recent years volatility in gold and silver prices has tremendously increased, but at the same time, with the presence of commodity exchanges such as MCX, the bullion traders have been able to hedge themselves. I would also like to stress upon the fact that, besides price risk management, the efficient price discovery through the MCX platform and further wide dissemination of prices through various mediums have instilled high degree of transparency in the entire bullion value chain, which is also greatly benefiting the small stakeholders in the value chain.”
“Separately, it was certainly our privilege to have hosted this educational seminal in association with MCX for the benefit of our association members”, he added.