Gold Is 15-20% Of Overall Volumes On MCX; Volumes In All Commodities Are Growing | CNBC TV18

Summary

R.I. Natani, Chief Business Officer at MCX, discussed the rise in commodity volumes, particularly gold, amid global uncertainty. He highlighted impressive growth in both futures (37%) and options (114%) for the year. Natani also addressed the potential for new product launches in the coming fiscal year and emphasized MCX's focus on the core commodity business, despite leadership changes. He confirmed that MCX has been insulated from recent SEBI restrictions impacting equity F&O. Technological advancements have improved MCX's platform, which supports continued growth. Natani hinted at more products for commodity traders in the near future.

Takeaways

• 😀 Gold is performing well and driving increased volumes on MCX, but other commodities like silver, energy, and industrial metals are also seeing growth.
• 😀 The volume of gold contributes around 15-20% of the overall trading volumes on MCX.
• 😀 Futures have seen a growth of 37%, and options have experienced an even larger growth of 114% in the current fiscal year.
• 😀 The overall growth of futures and options on MCX is around 101% when blended together.
• 😀 MCX is actively working on launching new products, with plans for new commodity futures and options products in the upcoming fiscal year.
• 😀 Although MCX is focused on commodity markets, there is no immediate plan to explore equities, as MCX is currently focused on the growth of its core commodity business.
• 😀 The leadership change with a new CEO at MCX has not led to a change in the company's growth strategy, which continues to focus on expanding in the commodity space.
• 😀 The recent SEBI restrictions on equity F&O norms have not impacted MCX, as the company remains insulated from these changes and continues to focus on its core business.
• 😀 Commodities are experiencing steady growth driven by global uncertainty and geopolitical issues, leading to increased demand for hedging through commodities.
• 😀 Technology improvements at MCX have enhanced the platform's ability to handle business more efficiently, offering a seamless experience for members and aiding overall business growth.

Q & A

What percentage of overall volumes on MCX is contributed by gold?

Gold comprises around 15 to 20% of the overall volumes on MCX.

How has the performance of commodities like gold and silver been on MCX?

Gold and silver are performing well, along with other commodities like energy and industrial metals, which are all showing strong performance on MCX.

What growth have futures and options seen on MCX this year?

Futures have grown by 37%, and options have grown by 114%, leading to a blended growth of 101% this fiscal year.

What new product launches can we expect from MCX in the upcoming fiscal year?

MCX has a robust pipeline of new products planned for launch, and once regulatory approvals are in place, these products will be introduced to the market.

Has the new CEO at MCX changed the company’s strategy?

There hasn't been a shift in strategy with the new CEO. MCX continues to focus on growth and exploring opportunities within the commodity space.

Is MCX looking at equities as a new growth avenue?

MCX is currently focused entirely on the commodity space and has no comments regarding any potential move into equities.

How have SEBI's recent F&O restrictions affected MCX?

SEBI's restrictions on F&O norms have primarily impacted the equity segment. MCX, being insulated from these changes, continues to focus on its business in the commodities market.

Have the F&O restrictions in equities led to more activity in commodities?

While volumes in commodities have been steadily growing, it is difficult to attribute this solely to the F&O restrictions in equities. Commodities have been growing due to global uncertainty and the need for hedging.

How has MCX’s technology platform contributed to business growth?

The technology platform at MCX has stabilized and improved the handling of business operations, providing members with a seamless experience, which contributes to overall business growth.

What expectations can traders have for the new financial year regarding MCX?

Traders can expect more products and instruments to be launched for the commodities market as MCX continues to explore new opportunities in the coming financial year.