MCX market has fallen in global ranking

Multi Commodity Exchange (MCX), the country’s largest in commodities, has fallen in global ranking despite growth in the number of contracts traded. Russia’s Moscow Exchange has surpassed Eurex, which used to be the largest in Europe so far. 

In the sector ranking for 2016 given by the Futures Industry Association, two weeks earlier, MCX was ranked seventh in the world, down from sixth a year before. National Commodity & Derivatives Exchange (NCDEX) was ranked 10th, down from ninth. NCDEX was hit with the suspension ordered in contracts for castor and chana (chickpeas) during 2016. 

On MCX, the number of contracts traded had risen 13.3 per cent to 245 million; NCDEX saw a fall of 31.2 per cent to 20 mn. While the exchanges didn’t prefer to discuss the issue, a source from the sector said: “The Moscow exchange also introduced some mini contracts and for their main crude oil contract, the contract size of a barrel is one tenth of the MCX’s. Huge volatility in prices of crude oil and the rouble in 2016 was also a reason for the Moscow exchange to surpass MCX.” 

Moscow’s commodity contracts nearly quadrupled in 2016 to 458.1 million, from 122.2 million in 2015. 

Indian sectoral  players also say, “Here, options are not traded and nor is the market open for institutional players. Both these are expected to start in 2017, which could see Indian exchanges shining in the global ranking. Already, new commodities are being added to the trading list, some for the first time.”