Commodity Futures in India
23 Pages Posted: 18 Jan 2005
Date Written: January 17, 2005
Financial derivatives, futures and options, have emerged as widely traded instruments around the world, including emerging markets. Commodity futures form a small part of that trading but have important hedging implications for agricultural producers and consumers. In India, trading in futures was banned for decades before it was again made legal in mid-90s. Since then commodity futures trading is conducted in over 25 exchanges, with four major multi-commodity exchanges set to dominate trading in the future. The exchanges vary in their contract specifications and settlement rules. Keeping pace with the rest of the world, Indian futures exchanges are also increasingly taking to the Electronic Communication Network (ECN) framework for trading.
Keywords: India, commodity, futures
JEL Classification: G13, N25
Suggested Citation: Suggested Citation