Friday, April 06, 2012

MCX, NCDEX to cut position limits from 10th April

MCX and NCDEX is going to take control over excessive speculation and decided to cut open position limit to restrict on quantity of commodities traded on four items from April 10. Commodities market regulatory board FMC is going to impose position limits on Chana, Soyabean, Refined Soya Oil and Mustard seed. The revised limits on open positions will be across all contracts and would be applicable from April 10.
In Chana Futures, a broker will be restriced to traded up to 75,000 instead of 1,00,000 tonnes and Individual trader is allowed to trade upto 15,000 tonnes against 20,000 tones whereas in near month contract a broker will be allowed to trade up to 15,000 tonnes of chana and client can trade 3,000 tonnes.
In Soyabean Futures, a broker will be allowed to trade up to 1,00,000 tonnes against 1,50,000 tonnes and client will able to trade to trade up to 20,000 tonnes.
In Refined Soya Oil position limited on broker will will be reduced to 85,000 tonnes from earliner 1,25,000 tonnes while client will be allowed to trade up to 17,000 tones instead of 25,000 tonnes.
Similarly in Mustard Seed Futures positon limit on broker will be reduced to 75,000 tonnes from earliner 1,25,000 tonnes and limits on clients would be 15,000 tonnes instead of 25,000 tonnes.
As prices of these four commodities have risen sharpley in last few months so regulatory has decided to take position limits. These measures are taken to proftect futures market from excessive speculation.
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