Universal Commodity Exchange (UCX) goes live on April 19, 2013

Universal Commodity Exchange (UCX), India's newest nationwide commodity futures trading platform, was inaugurated today amid traditional sounding of the gong. ‘Muhurat Trading' which symbolises the commencement of nationwide trading operations of UCX, was inaugurated by the Chief Guest: Shri Pankaj Agrawala (I.A.S) - Secretary- Ministry of Consumer Affairs, Food and Public Distribution, Shri Ramesh Abhishek- Chairman – Forward Markets Commission, was the Guest of Honour on the occasion. Luminaries from the Government, regulatory bodies, dignitaries from various financial institutions and media were also present to witness this historic moment.

UCX is a joint initiative by reputed institutions such as IDBI Bank, IFFCO, NABARD, REC and COMMEX Technology. It aims to be a credible and neutral nationwide electronic platform that serves the entire commodity value chain, thereby contributing to the development of trade, in order to ensure sustained inclusive growth with an ultimate objective of nation building.

The technology solution offered to trade participants and other service providers of UCX is user friendly, scalable, flexible and a secure platform with multi connectivity options. UCX also incorporates certain additional features/functionalities in the conventional solution, in-line with market feedback.

UCX, which received the Ministry approval and Government certification on August 30, 2012, will offer future contracts in Gold (Gold Kilo & Gold Nano), Silver (Silver 30 & Silver Nano), Crude Oil, Chana, Rubber RSS4, Mustard Seed, Soya bean, Refined Soya oil and Turmeric during the first phase of trading. UCX has already developed new variants of the existing permitted commodities and also a couple of new commodities that would be launched in due course of time (subject to necessary approvals).

Speaking on this momentous occasion, Mr. Ketan Sheth Chairman of UCX, said, "I am grateful to the Government and the regulatory authorities for providing us an opportunity to contribute towards the development of the commodities market in India. We believe that higher number of players in this space would ultimately lead to lower cost of trade, better services and turn-around-time, innovative products, accelerated development of support infrastructure and services, strong linkages with vibrant physical markets, wider awareness and reach, and market penetration. This would ultimately assist in the overall development of the commodities market in the country".

"UCX strives to ensure efficient price discovery and price risk management for all participants in the commodity value chain, i.e., right from farm-gate to the point of consumption. This will ensure a fair value to the producing community, an efficient and transparent hedging platform for intermediaries, processers and other trading interests of the market in general. UCX will spread awareness and education among stakeholders of the aforesaid value-chain, thereby ensuring a sustained and steady development of the commodity market and its different constituents," said, Mr. Praveen Pillai MD & CEO of UCX.

UCX has received an overwhelming response from trade participants from across the country. It has received more than 300 confirmations; of which, approximately 1/3rd have been successfully on-boarded and the remaining 2/3rd are at different stages of membership processing. The hallmark of the membership acquisition campaign is the fact that it has successfully acquired existing prominent traders. UCX could also garner interests from over 60 first-timer applicants.

"The key benefits given to members include multi segment product offering, optimal fees and deposits, zero blockage of excess risk capital, simplified and quick on-boarding of members, independent and professional management with a strong promoter consortium and customer centric approach, we aim to achieve a steady organic growth" added Mr. Praveen Pillai.

Source : Equity Bulls

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