MCX starts enrolling bank subsidiaries for trading in commodity derivatives

Axis Sec first member to provide broking services; exchange also plans new contracts

Multi Commodity Exchange (MCX) has started enrolling bank subsidiaries for trading in commodity derivatives. Axis Securities, an arm of Axis Bank, has become the first such, the first after the central bank permitted commodity exchange membership to provide broking services. The membership was granted in the first week of last month.

MCX is also planning futures contracts in brass. In another first from MCX, this one, unlike with other metals traded on the exchange, will be physical deliverable ones. The Securities and Exchange Board of India has already given approval.

 MCX said participation of entities backed by financial institutions such as banks