Commodity Trading on Saturdays : FMC Circular
Commodity trading on Saturdays will be held only in Agri Commodities as per Forward Markets Commission’s Circular FMC/3/2013/C/125 No.9/3/2008-MKT-I/ dated 18th September 2013.
Update of NCDEX : NCDEX vide circular No NCDEX/TRADING-092/2013/290 dated 19 Sep 2013 has notified that the following Non-Agri Commodities trading will be stopped with immediate effect.
Commodities which will remain closed for trading on Saturdays on NCDEX
Sr. No SYMBOL COMMODITY
1 BRENTCRUDE BRENT CRUDE OIL
2 COPPER COPPER
3 CRUDEOIL CRUDE OIL
4 GOLD GOLD
5 GOLDIND100 GOLD 100 GRAMS
6 PVC POLYVINYL CHLORIDE
7 SILVER SILVER
8 STEELLONG STEEL LONG
MCX also updated about stopping trading on Saturday in Non-Agri Commodities vide circular No 313/2013.
List of Non-Agri commodities stopped from trading on MCX wef 21 Sep 2013
At present trading hours for commodity trading on Saturday are from 10:00 Hrs IST to 14:00 IST. Saturday trading in both MCX and NCDEX exchanges are conducted on both agri and non-agri commodities. Although trading in agri-commodities are usual on Saturday’s due to local factors, metals, energies trading volume is very low as international markets are closed on Saturday and Sunday.
Market participants are advising and approaching FMC to declare Saturday as holiday for trading in non-agri commodities. Based on the feed back from exchanges and market participants, Forward Markets commission has decided to stop trading in non-agri commodities trading on Saturdays with immediate effect. All concerned exchanges have to submit compliance to this effect to FMC by 23 Sep 2013.
At the time of writing this (19 Sep 2013 17:30 Hrs IST), there is no official circular to this effect from MCX. But a circular stopping trading in non- agri commodities is expected soon. To comply with FMC circular before due time, trading in non-agri commodities shall be stopped from Saturday on 21 Sep 2013.
MCX is leader in trading volumes in non-agri commodities where as NCDEX has dominant trading volumes in agri commodities. As the volume in non-agri commodities on Saturday’s is very small it will have negligible effect on exchanges revenues.
On the other hand, the time on Saturdays which are presently engaged for trading in non-agri commodities can be effectively used for training of staff, maintenance activities and other record keeping purposes. This will improve the efficiency of all market participants.
It is clarified that trading is stopped on Saturdays only in non-agri commodities. All contracts of Agri commodities will trade as usual on Saturdays. The timing of trading of agri-commodities will remain same on Saturdays (From 10:00 hrs to 14:00 hrs).