Trade on MCX crosses Rs 1000 crore

Breaking its previous record, the zinc contracts on the MCX surpassed the benchmark turnover of Rs 1,000 crore on Monday, registering a turnover of Rs 1,031.92 crore.

This is for the first time that zinc has crossed a single-day turnover of Rs 1,000 crore on any exchange in the country.

The MCX, the largest exchange in the country for trade in international commodities, witnessed a record-breaking traded volume of over 50,100 tonne on Monday. The open interest in zinc contracts was recorded at 11,225 tonne.

"MCX is the only liquid exchange in the world after the LME that provides the opportunity in zinc to hedge against the price fluctuations. Zinc has about 97.41 per cent correlation with the LME prices," an MCX official said.

MCX also has a sizeable market share in the base metals futures market. Copper, zinc and aluminium are the three most liquid base metals that are traded on the exchange.

The exchange also offers trading in nickel, tin and lead. The turnover recorded in base metals trading on the MCX between January and October stood at Rs 157,251 crore, which is more than 73 times the turnover during the corresponding period last year.

For the success of metals contracts on its platform, the MCX has signed agreements with the London Metal Exchange, the largest metal exchange in the world, and the association has proved fruitful.

The strategic alliance between the two exchanges has helped in the efficient price discovery of base metals, principally that of zinc and aluminium.