Commodity derivatives markets caught in a downturn

Volumes fall to lowest levels after 2010, players lose interest, and brokers move to other businesses

The commodity derivatives markets are caught in a severe downturn. Annual aggregate volumes in commodity derivatives have fallen to their lowest level since 2010 and, at Rs 178.5 trillion (Rs 1 trillion = Rs 1 lakh crore), are a third of the peak seen in 2011-12.

A fallout of this is that those who have left the market may not come back. A big jobber who had significant shares in volumes a few years ago has shifted base to Singapore. Some have shifted to Singapore, doing jobbing on the Singapore Nifty platform. Many have just left the business or cut