Page 8 - Commodity Derivatives

Sebi allows voluntary exit of IPSTA, RCX as commodity derivative bourses

The boards of the two exchanges had resolved to take formal voluntary exit as recognised commodity exchanges

Tread cautiously

MFs' entry into commodity derivatives is a risky bet

Sebi proposes to allow MFs and portfolio managers in commodity derivatives

This is the second move by Sebi to allow institutional participants in the commodity derivatives market

Commodity derivatives markets caught in a downturn

Commodity derivatives market volumes and condition of its stakeholders is at its nadir with annual aggregate volumes lowest since 2010 and fell to just third of its peak seen in 2011-12 at Rs.178.5 trillion. There are reasons for market to be pessimistic and hence those who are still in market are looking for a messiah. New products and new players that regulator has initiated allowing entry could rescue them from falling business but real messiah as players say will be cost of trading and regulatory/compliance cost that shall come down.Experts are not hoping for past glory coming back where over a million people in the commodity derivative eco-system were getting job but a cautious tone for revival seems to have been set. Imposition of commodity transaction tax on commodity derivatives since July 2013, followed by NSEL crisis and crashing commodity prices after that have all played their role in taking wind out of sail of fast growing commodity derivatives.However consolidation ...

Hedge funds may be allowed in non-farm commodity derivatives initially

Following recommendations by its advisory committee Commodity Derivatives Advisory Committee (CDAC) Sebi has proposed to allow category-3 Alternative Investment Funds typically known as hedge funds in commodity derivatives. Market players, and sources involved in the discussion process said that entry of hedge funds, when implemented, will help bring liquidity in commodity futures and options. The move is a beginning to bring institutional investors in commodity derivatives. However, initially they will be allowed only in non-agri commodities. In agri commodities, still there are possibilities of government interventions and sensitivity of the segment.Hedge funds, be they local or overseas, have cheap funds while industry players who are actually hedging their commodity price risk on futures platform borrow funds. 'Globally hedge funds play in commodities is ten times bigger than in equity and many times they move the market. In India they will be big volume provides. We can see ...

Sebi to allow mutual funds in commodity derivatives in a month

It is also exploring allowing banks into commodity futures, has held talks RBI on the issue

Commodity derivatives: Sebi changes priority regulation

Market opening for new players in futures to precede options; considering to allow PE, VCs first and MFs later

Commodity derivatives: Sebi finalising stricter warehousing rules

An exchange-accredited warehouse service provider shall have at least Rs 10 cr in subscribed share capital