Spot and futures lack connection, says expert

Domestic commodities market lacks connection between spot and futures despite the latter's bearing on the former, said Suresh Kotak, chairman Kotak Commodity Services Ltd, in a privately organised seminar in Mumbai.

Although futures trading has gained good momentum in the last two-and-a-half years in India, option trading is far away which Chicago Board of Trade (CBOT) has started recently.

Emphasising on the need of options trading, Kotak said that the bullion trade in India needs a connection between spot and futures for better transparency and gaining traders' confidence. Although Indian commodities markets are going in right direction, the futures exchanges need to do a lot to keep the momentum going, Kotak said.