MCX emerges as 2nd largest Natural Gas Exchange globally

MCX has now emerged as the second largest Natural Gas Exchange globally, next to NYMEX. The exchange launched its Natural Gas futures for trading on July 10, 2006. Within two months of its launch, the traded lots have reached 5,46,150, which is 25% of NYMEX volume (23, 23,000).

The number of participants has also increased to 514 per day in August 2006 from 250 per day in July 2006. Daily average turnover of natural gas futures at MCX platform has increased significantly to Rs 436.91 crores in August 2006 from Rs 103.30 crores in July 2006.

“In a scenario where gas supplies are increasingly becoming more inclined towards benchmarking domestic prices on the basis of international market, MCX has provided a platform to players in the gas ecosystem to hedge their price risk,” said Mr Jignesh Shah, Managing Director and CEO, MCX.

At a time when market is being increasing aligned to international market and on the prices being worked out on the replacement fuel cost logic, MCX platform has come as an efficient price discovery tool to the small and medium consumers of natural gas.

Contd on page 2...