Friday, August 14, 2009

FMC May allow MCX to launch freight futures

MCX will get permission to start a freight rate futures contract if the country’s legal framework permits trade in the intangible commodity, Forward Markets Commission (FMC) Chairman B C Khatua said.
MCX has required the commodity market regulator’s approval to launch freight rate futures, said Khatua.

In 2004, MCX had tied-up with London’s Baltic Exchange to offer freight rate contracts in India.

However, Khatua said FMC was unlikely to permit MCX to launch a deliverable commodity basket contract, which will include a composite of commodities to be traded as a group.

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