India’s sixth nationwide commodity futures trading platform — Universal Commodity Exchange (UCX) — is set to go live soon as the Forward Markets Commission (FMC) has sent its favourable recommendations to its parent ministry, the Ministry of Consumer Affairs (MCA).
The other five commodity futures platforms that are currently in existence are: The Multi Commodity Exchange (MCX), National Commodity & Derivatives Exchange (NCDEX), National Multi Commodity Exchange (NMCE), Ace Derivatives and Commodity Exchange (ACE) and Indian Commodity Exchange (ICEX).
“Very recently, we have sent our recommendations to the MCA about UCX, which would be the sixth nationwide commodity exchange in the country,” said Ramesh Abhishek, chairman, FMC.
Promoted by Ketan Sheth of IT People, the entry of UCX in futures space is significant as this market has hardly any room for innovations.
While MCX has proved its mettle in non-agri space with around 85 per cent of market share, NCDEX remained strong in agri commodities. Ahmedabad-based NMCE has created its own niche to have expertise in plantations. The remaining two - ACE and ICEX - have also gained a portion existing markets in agri and non-agri space respectively and also, created a new market for themselves which proved supportive for the overall growth of commodity futures trading.
For the new entrant, however, innovations would be important which Sheth promises to deliver. But, he is yet to arrive at any conclusion as to what new to offer to traders.