FMC allows MCX to discontinue potato futures

Leading commodity bourse MCX has been allowed to discontinue potato futures contracts expiring in the current and next month with immediate effect, according to the regulator Forward Markets Commission (FMC).

Earlier this month, MCX had sought the regulator's permission to discontinue potato futures on its platform.

In its letter dated August 6, FMC gave approval to the MCX to discontinue the potato futures contracts expiring in August and September 2014 with immediate effect.

The approval has been given since the said contracts are no longer serving the purpose of price discovery and hedging because of lack of liquidity, broad based participation and adequate stock of potato in the exchange's accredited warehouses, it added.

FMC also directed that all outstanding open positions in the said two contracts should be settled at the last available daily settlement price of the respective contracts.

At MCX, the leading commodity bourse in the country, non-agricultural items are largely traded. Potato trading has good volumes on the NCDEX platform.

The exchange had made a business of Rs 2,33,834 crore in the second fortnight of July, with maximum turnover generated from gold, crude oil and silver.