Dear desai bhai and other senior colleagues .
I have few queries-
1) Commodity super cycle is over and after the huge crash in almost all commodities ,consolidation phase with low volatility is quite likely ( as is observed in past commodity cycles ). As we know volumes have direct co relation with volatility and if volatility recedes after the crash , wont the prospects for MCX affect significantly?
2) In the latest interview , MCX MD pointed out a key risk -
Do you see competition going up in the commodity exchanges business as SEBI takes over and equity exchanges establish their commodity platforms?
We feel both the BSE and the NSE will debut with their commodity platforms and it is going to be a challenging task for existing commodity exchanges. Because of fungibility of margins, cost of transaction on commodities will be lower in these exchanges.
But, it will take time. SEBI may not give a green flag to security exchanges to launch commodity platforms or commodity exchanges to launch securities segment until the existing commodity exchanges and brokers fully understand new products, such as commodity options, and indices, and commodity exchanges are at par with securities exchanges. Capital markets are way ahead of commodity markets, they provide co-location facility to members, they have options trading on their platforms, but commodity brokers are not exposed to all these.
Will the nse and bse pose significant threat to MCX`S 87% market share?
Views of other boarders is highly appreciated.
(Disclosure - Holding qty -Nil)