FMC increases open interest limit in 18 commodities

Market participants requested the move as exisiting position limits are impacting the liquidity and depth of the market

The Forward Markets Commission (FMC), the commodity markets regulator, has increased the open interest (OI) limit in 18 commodities, after market participants requested it to do so, as the existing position limits were impacting the liquidity and depth of the market.

Client-level open position limit in rapeseed and mustard seed has been doubled to 30,000 tonnes and soybean to 60,000 tonnes.

FMC has increased OI limit in gold to five tonnes from three tonnes currently; in silver, open interest has been increased to 100 tonnes from 60 tonnes. In copper, it has been increased to 7,000 tonnes from 5,000 tonnes.

In the agri space, OI limit for refined soy oil has been increased to 35,000 tonnes from 25,000 tonnes. In castor seed, it has been increased to 12,000 tonnes from 8,000 tonnes and in cotton it has been increased to 1,50,000 bales from 65,000 bales.

“This will have a positive impact as the depth in the market will increase. Hedger participation will also improve,” said Naveen Mathur, associate director of commodities and currencies at Angel Broking.