Thursday, May 17, 2007

MCX eyes $750-b turnover, will expand to Mauritius

The MCX commodity exchange expects a turnover of at least $750 billion this fiscal year and will launch an exchange in Mauritius as part of an international expansion.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 running to the end of March, turnover at Multi-Commodity Exchange (MCX), which was launched in 2003, totalled $480 billion.

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 at 10th, which already makes it bigger than the New York Board of Trade (NYBOT).

MCX, which together with its parent company holds a 49% stake in Dubai Gold and Commodities Exchange (DGCX), also plans to launch a multi-asset exchange in Mauritius this year, targeting offshore players.

Another project will be announced later, he said, adding that MCX was looking at Asia. 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.

Read more in The Economic Times article.

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