Commodity exchanges may soon be able to launch new products including options, indices, equity and currency derivatives.
An empowered regulator would have raiding and seizure powers,and would thereby be able to curb illegal Dabba trading (bucket shops). As per industry estimates,
Dabba trading volumes are
~10x commodity exchange volumes. Thus, there is significant potential for increased exchange volume due to crack-down of Dabba Trading.
This will reduce cost of commodity derivatives trading, as brokers/members common to equity and commodity exchanges would be able to sustain with reduced overheads. Further, client
margins could be made fungible across asset classes
With the listed positives MCX is definitely going to be emerged as top player in commodity trading with reduced costs
So MCX looks attractive @ CMP 1220
