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MCX
ferrous metals and a number of agricommodities on its platform. The futures contracts of MCX have demonstrably brought significant benefits to several sectors, not only for metals and energy but also for smaller agricultural commodities such as cardamom, mentha oil and soya oil. These futures contracts are found to be unique as they also cover currency risk, which is inherent in internationally-referred commodities. As settlement in MCXs futures contracts is allowed in Indian rupee, traders on this platform do not need to hedge separately against foreign currency risks. The Exchange offers a trading platform that operates continuously for more than thirteen hours each day. This helps hedgers, arbitrageurs and others to discover prices of various international commodities. In addition, owing to high positive correlation between the commodity futures prices of MCX and international markets, it is possible to ascertain trends between different markets, thus offering arbitrage opportunities. MCXs ability to use and apply technology efficiently is a key factor in the development of its business. The robust knowledge infrastructure of the Exchange, along with its rapid customisation and deployment capabilities enables it to operate efficiently with fast order routing, immediate trade execution, trade reporting, real-time risk management, market surveillance and market data dissemination. are vital for the development and prosperity of its business. Corporate social responsibility activities are, therefore, viewed not as mere responsibilities but as opportunities to collaborate with diversified partners. The companys larger goal is to achieve inclusive growth as well as India's economic prosperity. Its flagship community support initiative Gramin Suvidha Kendra a joint venture with India Post is a unique project for creating sustainable and comprehensive rural development programmes.

Although derivatives trading in India dates back to 1875, MCX is her first organised commodities exchange. Launched in 2003, MCX has already powered its way to the top three commodity bourses in the world. The company now offers trading across more than 40 platforms including bullion, energy, ferrous and non-ferrous metals and agri-products. It leads the world in gold and silver exchange and is the second largest in natural gas and the third largest in crude oil futures. MCX expects that someday, not too far away, it will occupy the corner office in the global commodities market.

recognition as Indias First Green Exchange by Priyadarshini Academy and was conferred the Best Bullion Exchange award by the Bombay Bullion Association. In the following year, MCX was given the Golden Peacock Special Commendation award for Corporate Social Responsibility, the Sankalp award for Agriculture and Rural Innovation and the Best Commodity Exchange award at the Sixth India International Gold Convention. At the beginning of the present decade it was felicitated with the NASSCOM Social Innovation Honours and the FICCI Socio Economic Development Foundation CSR award. Earlier in 2011, MCX received the Financial Inclusion award from the SKOCH Foundation, the Indys award under the category of Best in Corporate Social Responsibility Practices. The Business Superbrands award for the year 2011 and the Best Commodity Exchange of the Year were awarded to it by the Bombay Bullion Association.

Brand Values
MCX meets international best practice standards in terms of its technology, risk management systems and self-regulatory mechanisms. The companys unique selling proposition is trust a truly bankable value for investors that underwrites and guarantees market integrity through a plethora of safeguards. MCX the brand represents a fully neutral trading platform with no interest in the direction of price movement. Its futures prices efficiently reflect supply and demand conditions. The company uses world-class systems for polling spot prices. By launching innovative products and services and by taking a unique approach to develop the commodity ecosystem, MCX stands out as a bourse of considerable repute. MCXs leading position is underpinned by strong fundamentals that enables it to capitalise on its raison dtre of being the first exchange of choice.

History
India has had a long history of organised commodity derivatives. Historically, such a commodity exchange was established in 1875 with the derivatives market flourishing in the following years. However, it was with the Government of India notifying in April 2003 the permission for futures trading in commodities that opened the entire commodity spectrum for futures trading. This epoch-making step has allowed online trading, clearing and settlement operations in commodity futures contracts. The incorporation of MCX on 19th April 2002 and its permanent recognition from the government on 26th September 2003 have become the real turning points in the area of commodity futures exchange. MCX, promoted by Financial Technologies (India) Limited, enjoys the confidence of investors from Indian and international financial sectors like Euronext N.V., State Bank of India and its associates, National Bank for Agriculture and Rural Development (NABARD), SBI Life Insurance, Bank of India, Bank of Baroda, Union Bank of India, Corporation Bank, Canara Bank, HDFC Bank, FID Funds (Mauritius), Merrill Lynch and several others on one hand, and has won the hearts of producers, suppliers and traders of various commodities on the other. With an aim to seamlessly integrate with the global commodities ecosystem, MCX has forged strategic alliances with leading international exchanges such as Euronext-LIFFE, London Metal Exchange, CME Group, the Baltic Exchange, Shanghai Futures Exchange and Taiwan Futures Exchange.

Market
In the recent past, brand MCX has taken a giant leap forward. Indias No, 1 commodity exchange is, today, the first and only Indian exchange to be listed on Indian bourses. In just over two years, the phenomenal growth has helped MCX climb the global ranking. From being the No. 6 commodity futures exchange in the world, in terms of the number of contracts traded, MCX became the No. 3 global commodity futures exchange at the end of calendar year 2011. Today MCX is the worlds No. 1 commodity futures exchange in gold and silver, No. 2 in natural gas and No. 3 in crude oil in terms of the number of contracts traded (Source: FIA Annual Volume Jan-Dec 2011 and various exchange websites). The Exchange offers trading across more than 40 products including bullion, energy, ferrous and non-ferrous metals and agri-products. Prominent amongst other commodities are gold and silver and natural gas and crude oil futures. Over the last few years, Indias commodity futures market has witnessed tremendous surge in volumes. A number of reports suggest that much of this can be attributed to increased market participation and augmented awareness levels that a commodity exchange can be both a portfolio diversifier and a risk management tool. It is believed that as more commodities are traded, commodity futures could actually surpass volumes of the stock market. A new wave of impending regulatory reforms will not only help deepen the market but also bring in professional practices and approach to Indias commodity market. It will open the doors for commodity exchanges to introduce new products and attract myriad participants with divergent needs to hedge against commodity price risk.
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Achievements
It has been less than ten years since MCX opened its door to futures trading. So it must be an exceptional achievement that in this brief span of time it has already emerged as the third largest futures exchange in the world and its fastest growing. It is even more gratifying to know that in several individual commodities it occupies a very premium place. While its short-haul gains are profoundly impressive, the honour of being the only commodity exchange in the world to be certified to three ISO standards - ISO 9001:2008 for quality management systems, ISO 14001:2004 for environmental management systems and ISO 27001:2005 for information security management systems is even more satisfying. Apart from these accomplishments, MCX has several other firsts to its credit. MCX was the first exchange in India to offer futures trading in steel, crude oil and several other commodities including carbon credits. The Exchange was the first to introduce indices such as MCXCOMDEX (commodities index), MCXAgri (agricultural commodities index), MCXEnergy (energy commodities index) and MCXMetal (metal commodities index). It was the first exchange in India to initiate evening trading sessions that synchronised with the trading hours of global exchanges in London, New York and other major international markets. In March 2011, MCX became Indias first exchange to report its sustainability performance for the financial year 2009/10. The Exchange has also been the first in India to introduce innovative products such as contracts with smaller lot sizes. These include mini contracts of metals such as zinc, lead, aluminium, copper and nickel, gold petal (one gram gold contract) and silver micro (one kilogram silver

Recent Developments
History is made by the brave; those who fearlessly go forward into unchartered territory. Thanks to its experience and the fine advice it receives, MCX has quickly shifted gears. Not content with being just another exchange it upped the ante becoming the first exchange in India to be listed. At the same time reaping the benefits of its aggression, MCX moved up the pecking order of international commodity futures exchanges from being ranked the sixth in the world to now the third. Some part of this forward movement can be attributed to its muscle in metals and energy.

contract). On 9th March 2012, MCX achieved another feat by becoming the first exchange in India to get listed, thus placing it on par with other listed global exchanges. To strengthen its back-end operations technologically, MCX has implemented SAP ECC 6.0 solutions to automate and integrate its key business processes. It has the distinction of being the first commodity futures exchange in India to deploy online proprietary technical analysis tools such as MCX ACT and MCX ACTmini on its website. This enables market participants to analyse, identify and understand market conditions and behavioural patterns by allowing them to view and customise charts in terms of duration and time. With continuous improvement, it comes as no surprise that MCX has been awarded for its pioneering work. In September 2006, MCX bagged the Best Commodity Exchange award presented by His Excellency Datuk Peter Chin Fah Kui, Minister of Plantation Industries & Commodities of Malaysia, in Mumbai. In the same year it won the Number One Commodity Exchange of the Year award presented by the National Agricultural Cooperative Marketing Federation of India (NAFED). In 2007, it was bestowed with the eMpi-Indian Express Indian Innovation award and followed it by the Rotary International CSR award: 2008. It has already been honoured, thrice, by the Golden Peacock EcoInnovation award; it gained

Things you didnt know about

MCX
MCX is Indias biggest commodity exchange with over 86% market share In terms of the number of contracts traded, MCX is the worlds No. 3 commodity futures exchange MCX is the worlds No. 1 commodity futures exchange in gold and silver, No. 2 in natural gas and No. 3 in crude oil in terms of number of contracts traded The Exchange has more than 2170 registered members who operate through over 346,000 terminals across 1577 cities and towns in India MCXs average daily turnover during 2011 calendar year stood at C50,313 crore (US$ 9.20 billion) The highest single-day turnover recorded by MCX during 2011 was C111,666.16 crore (US$ 20.30 billion) MCX has the distinction of being the first commodity exchange in Asia to launch futures contracts in crude oil, gold guinea and gasoline, amongst others

Promotion
MCX has launched a slew of initiatives with a motive of demystifying the commodity futures exchange markets. The Exchanges extensive knowledge series and training courses educate people about the benefits of trading on an exchange platform and impart accurate and relevant information about the commodity markets. To facilitate price dissemination, it has installed numerous ticker-boards at Agriculture Produce Market Committee (APMC) mandis and other public places in most states. The Exchange has also aligned with numerous banks, electronic and print media and telephone services for providing commodity price updates. This information is also available on mobile phones through a WAP portal. MCX is committed to nurturing communities that

Product
Today, MCX offers more than 40 commodities across various segments such as bullion, energy, ferrous and non-

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