Istanbul: The Multi-Commodity Exchange (MCX) expects turnover of at least $750 billion (Rs30.75 lakh crore) this fiscal year and will launch an exchange in Mauritius as part of an international expansion, a senior official said.
Reforms, such as allowing new kinds of forward contracts or algorithmic trading in India, are pending approval and Lamon Rutten, joint managing director of MCX, said a go-ahead for just two measures would take volumes to $1 trillion this year.
In the last fiscal year, ended 31 March, turnover at MCX, which was launched in 2003, totalled $480 billion, he said.
“If any two of the government measures come through we’ll hit $1 trillion this year,” he said on the sidelines of a conference in Istanbul on 15 May 2007.
Rutten said the aim was for MCX to become one of the top-five futures exchanges in the world within five years, from its current ranking, which places it at number 10.
MCX, which, together with its parent company, holds a 49% stake in the Dubai Gold and Commodities Exchange (DGCX), also plans to launch a multi-asset exchange in Mauritius this year.
“We expect it will exist by the end of the year,” he said, adding it already had a licence. “It would be an offshore financial centre.”
They were still deciding which products would be traded. “We will have gold, the traditional big commodities, but the unique aspect will be the innovative products,” Rutten said, adding the Mauritius exchange would be large, overtaking Dubai in two to three years.
Another project will be announced later, he said. Rutten declined to give details. He also declined to comment on any involvement in a new commodities exchange in Egypt, which Cairo is planning for next year.
Rutten said DGCX has postponed by three months a plan to launch a steel-future contract, putting the team that had been preparing it to work instead on a rupee future, which will be the first in the world.
Steel futures had been due to start in May but he said the rupee contract would come first, launching either this month or the next.
The rupee contract will be settled in euros and is expected to attract demand from small and medium companies wanting to protect themselves from moves in the currency, which has risen more than 8% against the dollar this year.
“Exporters need hedging... Small and medium-sized companies don’t have access,“Rutten said.