Business Standard

UCX suspends trade within 18 mths of launch

India's sixth nationwide commodity exchange pulls down the shutter after MMTC promoted ICEX (fourth) suspended trading early this year

Related News

Within 18 months of commencing operations, IT People-promoted Universal Commodity Exchange (UCX), India’s sixth nationwide trading platform, has suspended trade in all commodities, with immediate effect.

With this, became the second exchange to suspend futures trade in commodities. Early this year, MMTC-Indiabulls-promoted and Reliance Group-anchored Indian Commodities Exchange (ICEX) had suspended trade.

In a circular, UCX said, “Due to prevailing market conditions, it has been decided to suspend the trading activities of the exchange temporarily, subject to the approval of the regulator Forward Markets Commission (FMC) till the time a renewed plan is put in place.”

A UCX official said, “The has approved the proposal to stop trading in all contracts where open interest is zero, with immediate effect. Also, all such contracts will be put on a square-off mode and trading thereon shall be suspended immediately, as soon as open interest becomes zero. No new contracts shall be approved for trading and no fresh contract will be launched without the approval of the FMC.”

Efforts to contact Ketan Seth, managing director of IT People, as well as Praveen Pillai, managing director and chief executive of UCX, remained unsuccessful.

In 2012, UCX began trade in 15 commodities, claiming it would offer different types of contracts to attract participation.

National Bank for Agriculture and Rural Development, Indian Farmers Fertiliser Cooperative Ltd, IDBI Bank, Rural Electrification Corporation Ltd and Commex Technology are major shareholders in UCX.

The UCX circular said the exchange would ‘de-hire’ all its warehouses with immediate effect. Members with stocks in any exchange-accredited warehouse were to lift the goods within 10 days from the issue of the circular, unless they wished to deliver against their open positions, failing which they had to bear the monthly commitment fees paid by the exchange to the warehouse concerned, it added.

“During the period under trading suspension, the exchange will draw up a fresh strategy, including without-limitation new segments and products in view of the prevailing market conditions,” said Jeyakumar A S, company secretary and chief compliance officer, UCX.

According to the FMC website, UCX’s turnover for June stood at Rs 2,152.25 crore.

Read more on:   
|
|
|
|
|

Read More

Natural rubber imports up by 58% to 1.61 LT: Sitharaman

Natural rubber imports have risen by 58 per cent to 1.61 lakh tonnes in the first six months of 2014, Parliament was informed today.

Quick Links

 

Market News

Aluminium companies benefiting by unusually high premiums

Domestic aluminium producers Hindalco, Nalco set to benefit

Karnataka govt flouted norms in mine allocation, alleges steel sector

Steel industry wants the state to adhere to guidelines on mine allocation

Price fall takes a massive toll of iron ore e-auction in Goa

Two-third of bidding quantity remained unsold in fifth round of bidding early this month

Crude oil slips below $78 a barrel

Brent crude oil fell below $78 a barrel on Thursday, as the demand outlook was hit by weak economic data in China and Europe, outweighing ...

Delisting gets tougher

The Securities and Exchange Board of India announced changes to delisting regulations on Wednesday. Companies will now have to acquire shares ...

Back to Top