February 2015 : Market share of MCX Up to 87.50%,

The Union Budget 2015–16 has proposed the merger of the FMC with SEBI, a move that will surely strengthen regulation in the commodity derivatives market and pave the way for the introduction of new products, which are not permitted for want of amendment of the FCRA.

The immediate benefit to the commodity futures market would be a curb on dabba trading (bucket shops) which is rampant in our market.

The Nielsen report of 2013 (prior to the imposition of CTT) estimated that dabba trading was at least three times the official trades on exchanges. The market feedback is that the said illegal trading is now 8 to 10 times the official trades as the cost of trading has increased manifold due to the imposition of CTT (`1000 per crore on the sell side).

MCX has been maintaining its market share and leadership position. The market share of MCX during February 2015 went up to 87.50%, as against 79.47% in the corresponding month the
previous year.

For creating awareness on the need and importance of hedging, MCX conducted 48 awareness programmes across India during February 2015. In addition, 36 farmers’ training programmes were held during the month, which were attended by 1,470 farmers.