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MCX turnover likely to touch Rs 100 lakh crore this yr

MCX turnover likely to touch Rs 100 lakh crore this yr

Currently, the exchange has the largest market share of 83 per cent in the commodity futures market, with more than 2,000 members and 1,00,000 trader workstations.

India's largest commodity exchange, the MCX , expects its turnover to touch Rs 100 lakh crore in the 2011 calendar year, a top official said.

Turnover of the bourse was Rs 86.97 lakh crore in 2010.

"Yes, it (turnover) will touch Rs 100 lakh crore in 2011," according to MCX Managing Director and CEO Lamon Rutten. In order to keep up the pace of growth, Rutten said the exchange will continue to look at new products for launch in the coming months.

"We have some products ready. We will launch at the right time," he said, but declined to give details.

At the MCX platform, much of the trade volume comes from futures trading in bullion, metals and crude items. The contribution of farm items remains just 2 per cent of the total product basket.

Asked if the exchange plans to focus on farm items this year, Rutten said, "Unless we ensure delivery, we are not going to launch new agricultural products."

Currently, the exchange has the largest market share of 83 per cent in the commodity futures market, with more than 2,000 members and 1,00,000 trader workstations.

MCX is also in the process of launching an initial public offer (IPO) and it is preparing to file a draft red hearing prospectus (DRHP) with market regulator SEBI.

Rutten said that the exchange is not going for an IPO to raise capital. "The promoter of the exchange -Financial Technologies Ltd- will sell its stake through the IPO," he said.

The overall turnover of the commodity futures market, comprising 23 bourses increased to Rs 105.09 lakh crore in the 2010 calendar year, as against Rs 70.90 lakh crore in the previous year.