The value of delivery in both Steel Long and Diamond contracts expired on 4th January stood Rs 5.2 crore. This is the highest value of delivery at ICEX since the launch of Diamond and Steel Long future contract in August 2017 and August 2018 respectively. The settlement witnessed smooth delivery of 1230 MT steel Ingots/Billets valuing INR 4.06 crores and 31.34 carats of diamond valuing INR 1.06 crores.
Mr. Sanjit Prasad, MD & CEO of ICEX said, “ICEX has made a principled decision to launch compulsory delivery contracts which is a perfect platform and caters the need of all the participants in the echo system. Hence, ICEX trading platform provides a good opportunity for hedging the price risk for hedgers as contract expiry exhibits close convergence of the settlement and spot prices.”
In the previous month, i.e., December, 2018, ICEX registered physical delivery of 590 MT Steel valuing INR 1.99 crore, while the physical delivery of 32.10 carats diamonds valuing INR 60 lakh. He further added that “since inception, the quantity of delivery upon contract expiry has witnessed upward movement. It signifies credibility and transparency of ICEX contracts and settlement system which has been exhibited through increasing participation of commodity stakeholders.
Indian Commodity Exchange (ICEX) is SEBI regulated online Commodity Derivative Exchange. Headquartered at Mumbai, the exchange provide nationwide trading platform through its appointed brokers. The exchange launched world’s first ever Diamond derivative contracts.
The Indian Commodity Exchange (ICEX) would launch pepper and cardamom contracts in its platform in the near-future. The exchange is the first to launch the world’s first diamond derivatives contracts in August last year.
ICEX launched derivatives in diamond and steel as India was a major player in both the commodities. India has a 70% share in cutting and polishing of diamonds and in steel we are the second largest market. The company has daily turnover of Rs 100 crore in diamond contracts and Rs 20 crore in steel. It is looking at a daily turnover of Rs 500-600 crore in diamond alone by the next quarter with Sebi approving foreign entities having actual exposure to Indian physical commodity markets to trade in the commodity market .
Last year, ICEX had merged with National Multi Commodity Exchange (NMCE) creating the country’s third biggest commodity exchange. NMCE rubber contracts started trading in ICEX post Sebi approval. Volumes and open interest are seen increasing consistently in rubber post the merger.
Some of Prominent shareholders of ICEX are MMTC Ltd, Indian Potash Ltd, KRIBHCO, IDFC Bank Ltd, Reliance Exchangenext Ltd and Indiabulls Housing Finance Ltd.
The exchange launched world’s first ever Diamond derivative contracts. ICEX aims to provide futures trading products in India’s all economically relevant commodity. At present it offers futures contract in Diamond. Providing desired price risk hedging solution to the trade through innovative contract designing forms core value of ICEX.
This exchange is ideally positioned to leverage the huge potential of commodities market and encourage participation of actual users to benefit from the opportunities of hedging, risk management and supply chain management in the commodities markets.