India's sixth nationwide commodity futures trading platform, Universal Comm-odity Exchange (UCX), is set to go live in April this year with at least 10 agri and non-agri commodities in its kitty.
The exchange has enrolled a little 200 members for trading on its platform, which is awaiting the issuance of a unique trading code by the regulator, Forward Markets Comm-ission (FMC).
"We are in the process of getting a unique trading code for each of our registered members. Once that process gets completed, we would be ready for launch," said Ketan Sheth, managing director of Commex Technologies, the promoter of UCX. The exchange got a nod from the ministry of consumer affairs in August last year. Since then, UCX has been steadily getting approvals for contracts. With the financial year drawing closer, the exchange awaits its completion to commence trading in the new financial year.
"Generally, traders' interest reduces towards the end of the financial year. Hence, we are waiting for this period to end to commence futures trading in at least 10 commodities," Sheth added.
Meanwhile, FMC has approved the appointment of Praveen Pillai as managing director and chief executive officer of the exchange for three years, effective July 1, 2012. The other five commodity futures platforms are: Multi Commodity Exchange, National Commodity and Derivatives Exchange, National Multi Commodity Exchange, Ace Derivatives and Commodity Exchange and Indian Commodity Exchange. Asked about innovation, Sheth said: "We would be like one in the lot. Contracts would be similar to what are currently available on other platforms." The launch of a new exchange, however, is set to intensify competition. Traders would benefit from inter-exchange and inter-contract arbitrage opportunities.
Worst may be over for broking firms in terms of business prospects, but shares are unlikely to outperform the benchmarks