3. •The world's oldest established futures exchange, the Chicago Board of Trade, was
founded in 1848 by 82 Chicago merchants. The first "to arrive" contracts were flour
timothy hay "Forward "arrive flour, seed and hay. Forward contracts on corn were
introduced in 1851.
•The Chicago Mercantile Exchange, was founded as the Chicago Butter and
Egg Board in 1898.
• Most of the exchanges in the developing World were established in the 1980s and
1990s in response to government liberalization of commodity markets.
• In the 21st century, online commodity trading has become increasingly popular,
and commodity brokers offer front-end interfaces to trade these electronic-based
markets.

4. Source: As per the data compiled from the respective exchange website
0
50
100
150
200
250
300
350
400
450
500
Volume (Million Contracts)

5.  Commodity Markets have their presence in country for
over 120 yrs.
 Trade in commodities has been Unorganized in Regional
markets & Local Mandis.
 Trading in Futures Contracts has been permitted in over
120 commodities.
 Physical commodity market size in India is estimated to
be around 25 lakh crore per annum.
 Major commodities traded in India are - Gold, Silver,
Crude Oil, Copper, Guar, Chana, Spices, among the few.

6. 6
• Ban in forward trading from mid-sixties
• Prior to ban
– Thriving commodity exchanges for cotton, gold, edible oils etc.
– more than 20 regional commodity specific exchanges
• Recent developments
– Ban completely lifted in 2003
– Emergence of national level de-mutualised online multi-
commodity exchanges
– 3 National and 21 regional exchanges
– Trade in 60 commodities compared with just 8 in 2000
• Growth exceeds 7-8 times in FY09 over FY10

7. Exchanges Places Sites
Shanghai Futures Exchange Shanghai (www.shfe.com.cn )
CME Group/Chicago Chicago (www.cmegroup.com)
Dalian Commodity Exchange CHINA (www.dce.com.cn )
The Zhengzhou Commodity Exchange (ZCE) CHINA (http://english.czce.com)
Intercontinental Exchange Europe (www.theice.com)
MCX India (http://www.mcxindia.com/)
London Metal Exchange- London (http://www.lme.com/)

8. Ahmadabad Commodity Exchange
First Commodity Exchange of India Ltd, Kochi
The Bikaner Commodities Exchange Limited Haryana Commodities Ltd., Hissar
The Bombay Commodity Exchange Ltd The Indian Pepper and Spice Trade Association
Bhatinda Om & Oil Exchange Ltd., Bhatinda The Meerut Agro Commodities Exchange Co. Ltd., Meerut
The Central India Commercial Exchange Ltd, Gwalior National Board of Trade Limited
The Chamber of Commerce Rajdhani Oils and Oilseeds Exchange Ltd. , Delhi
E-Commodities Ltd The Rajkot Seeds oil & Bullion Merchants` Association Ltd
The East India Cotton Association Surendranagar Cotton oil & Oilseeds Association Ltd
The East India Jute & Hessian Exchange Ltd, The Spices and Oilseeds Exchange Ltd.
& Vijay Beopar Chamber Ltd., Muzaffarnagar

9. Futures
MCX (Multi Commodity Exchange)
NCDEX (National Commodity & Derivative
Exchange) &
NMCE (National Multi-commodity Exchange)
ICEX ( Indian Commodity Exchange)
Spot
NSEL(SPOT)
NCDEX Spot Exchange Ltd. (NSPOT)

10. 0
10000
20000
30000
40000
50000
60000
70000
MCX NCDEX NMCE ICEX
VOLUME (IN Cr.) Per Day
VOLUME (IN Cr.) Per Day

11. Conversion: Rs. 10 Lakhs = Rs. 1 Million
Oct Nov Dec Jan Feb Mar
Year 2010 2010 2010 2011 2011 2011
Value (Rs. In Lakhs) MCX 84768705.18 90590032.24 80146651.04 91979719.82 91206398.35 112030173.8
Value (Rs. In Lakhs) NCDEX 9534579 13371891 15392890 18033880 19660006 14985505
0
20000000
40000000
60000000
80000000
10000000
12000000
Value(Rs.InLakhs)

12. 0
20000
40000
60000
80000
100000
120000
140000
160000
Vol in Crore Per Day
F&O and MCX Volume in Cr. Per day
F&O
MCX/NCDEX

13. 13
Unlike developed markets, participation in Indian market is more retail &
individual and not institutional
17.724 34.8
152.4
569.196
887.04
0
100
200
300
400
500
600
700
800
900
1000
FY06 FY07 FY08 FY09 April-OCT
2010
USDBillion
17.724 34.8
152.4
569.196
887.04
0
100
200
300
400
500
600
700
800
900
1000
FY06 FY07 FY08 FY09 April-OCT 2010
USDBillion

14. Source: As per the data compiled from the MCX exchange website
0
5000000
10000000
15000000
20000000
25000000
30000000
35000000
40000000
45000000
2008 2009 2010 2011
TradedContracts(inLots)
GOLD
SILVER
COPPER
CRUDE OIL
ZINC
NICKEL
NATURALGAS
MENTHAOIL
LEAD

15. Introduce on October 7, 2008 by launching monthly contracts in the USDINR
currency pair under the regulatory framework of Securities and Exchange Board of
India (SEBI), and Reserve Bank of India (RBI). Consequently, the stock exchange
expanded its currency derivatives offerings to Euro-Indian Rupee (EURINR), Pound
Sterling-Indian Rupee (GBPINR) and Japanese Yen-Indian Rupee (JPYINR).
Each of these currency contracts on MCX-SX has a life of 12 months from the
month in which it is launched.
Currency Trading available in…
USD – INR
Euro-INR
Pound Sterling-INR
Japanese Yen-INR

16. Total Value
(in Crores)
2011 1028554
2010 3445974.736
2009 1071582.862
2008 43571.986
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000

17. • India had long tradition; market
now being revived; paradigm shift
in thinking,
• Huge appetite for speculation;
equity players expand into
commodities; more liquidity.

18. • Banks, MFs, FIIs may be allowed to
trade commodities; huge fund flow
expected; volatility will create
market opportunities for investors;
• Gold ETF has all ready launched
A gold exchange-traded fund (or GETF) is an exchange-traded fund (ETF) that aims to track the price of gold. Gold
exchange-traded funds are traded on the major stock exchanges including Zurich, Mumbai, London, Paris and New
York. As of October 2009, gold ETFs held 1,750 tonnes of gold in total for private and institutional investors.[1] There
are also closed-end funds (CEFs) and exchange-traded notes (ETNs) that aim to track the gold price.
Each gold ETF, ETN, and CEF has a different structure outlined in its prospectus. Such instruments do not
necessarily hold physical gold. For example, gold ETNs generally track the price of gold using derivatives. All
exchange-traded instruments, including those that hold physical gold for the benefit of the investor, carry risks beyond
those inherent in the precious metal itself. The most popular gold ETF (SPDR Gold Trust, symbol GLD) has been
compared with mortgage-backed securities and collateralized debt obligations due to its complexity.[2][3] The extensive
analysis and criticism received by GLD is instructive for reviewing all gold ETF's, many of which are similarly complex
and have received little scrutiny.

20. • Usually derivatives markets are much larger
than the spot markets.
• In India itself, the derivatives markets in
equity instruments are at least 2 to 3 times
the size of the spot markets.
• With similar assumptions, you can expect
daily volumes of Rs. 1,00,000 crores in the
commodity derivatives markets.
CAN YOU AFFORD TO MISS OUT ON THIS?

21. • Promoted by Inventure Group
• Member of NCDEX,MCX & NMCE.
• Offers trading in a wide range of
commodities.

22. • RMS: We have expert RMS team to monitor your
client’s trades.
• Dealing: will provide you support for dealing.
• Research: Daily we are sending out 8-10 research
calls with accuracy of around 70%.
• Call Example-
Range Trading>> Buy Gold@ 19612-19622 with S/L 19590
for the Target 19660 then 19670,
S/l-Stop loss

23. • Will provide you training for clearing
currency certification at office every
Saturday in collaboration with exchange.
• Pricing will be as per F&O segment.

24. • To be in touch with the prospect and existing
business holder
• For any query regarding Commodity & Currency..
C&C.helpdesk@inventuregrowth.com,
• For chatting
commodities.inventuregrowth@yahoo.in,
Where all can come to share their view for develop
the business.

25. • Double up your Revenue with same cost and
infrastructure
• Post 8 PM trading support

26. Process for trading (non-physical)
• Open broking account
• Deposit money for meeting margin
requirements. Margins are usually:
– Mark to market payments
• Take a position in the commodity
• Liquidate the position by squaring up.

27. Can Buy or Sell in each contract. There are available almost 3-6
month contracts.
• Process for Delivery sale
• Sell the commodity.
• Request for giving delivery, if the seller is giving delivery, the buyer has
to accept if his position is outstanding on the settlement date.
• Seller will take goods to notified warehouse.
• Goods will be assayed and accepted by warehouse.
• Warehouse will intimate registrar who will make entry in the seller’s DP
account.
• Now seller is ready to deliver.

28. Cont…
• Process for delivery purchase
• Purchase the commodity.
• Request for delivery. The option for delivery is seller’s and not buyer’s.(Subject to commodity)
• If sellers give delivery and you are marked for receiving delivery by the exchange, you will
receive delivery.
• The delivery will be given to you vide entry into your DP account/in physical warehouse receipts.
• Else, your position will be squared up at the settlement close out price.
• An arbitrage technique in which a trader buys one commodity and sells another
contract of the same commodity to capitalize on a discrepancy in prices.
• The simultaneous purchase and sale of an asset in order to profit from a
difference in the price. This usually takes place on different exchanges or
marketplaces or contracts
Also known as a "risk less profit".

29. .

30. Sudhakar Rai
In charge – Commodities/Currency.
Tel (Off): 91 22 39548500, EXT-579.
Mobile : 09987215190,
Email:-Sudhakar.rai@inventuregrowth.com

31. Join Us!
Member :
NSE, BSE, MCX, NCDEX,
NMCE
Depository Participant:
CDSL
Regd. Office :
201, Viraj Tower, Near Landmark
constructing, W.E. Highway, Andheri(E),
Mumbai- 400069.
Telephone : 91-22-39548500
Fax : 91-22-40751535
Corporate Office :
201, Viraj Tower, Near Landmark
constructing, W.E. Highway, Andheri (E),
Mumbai- 400069.
Telephone : 91-22-39548500,
Fax : 91-22-40751535
Website: Email:
www.inventuregrowth.com C&C.helpdesk@inventuregrowth.com,