Mumbai: Turnover on the Multi Commodity Exchange of India Ltd, or MCX, the world’s third biggest gold bourse, and other domestic rivals climbed 40% in the four months ended July as trading in bullion and crude oil increased.
Commodities worth Rs16.5 trillion were traded between April and July compared with Rs11.8 trillion a year earlier, the Forward Markets Commission, or FMC, which regulates the exchanges, said in a release on its website on Monday.
Crude oil has gained 62% in the past year, reaching a record $147.27 a barrel on July 11. Gold has risen 28% in the same period.
Contracts worth Rs3.01 trillion changed hands on the exchanges in the two weeks ended July 31, up 82% from a year earlier, the regulator said.
MCX, in which Fidelity International Ltd and Citigroup Inc. own stakes, posted a turnover of Rs2.55 trillion in the two weeks to 31 July. Gold, silver and oil made up for more than a third of the volume. MCX is the world’s No. 3 bullion exchange.
Turnover at rival National Commodity and Derivatives Exchange Ltd, part-owned by Goldman Sachs Group Inc. and Intercontinental Exchange Inc., fell 17% to Rs42,300 crore, after the government in May banned futures trading in soybean oil, natural rubber, potatoes and chickpeas.
The ban is valid until 6 September.
Meanwhile, B.C. Khatua, chairman of FMC, the country’s commodity market regulator, said on Monday that the ban on futures trading in these commodities has not helped cool prices.
“The ban has not helped cool prices. Prices of the three commodities have only gone up after the ban was imposed. Only potato has fallen by some 20% after the ban,” he said. “Several studies have revealed that futures trading don’t contribute to a price rise. Price increases or declines are a function of how the market perceives the availability of various commodities. I would like to believe nothing has changed in the market after the ban was imposed.”