Mumbai, Jan 25 (PTI) The commodity markets regulatorForward Markets Commission (FMC) has approved futures tradingin iron ore, a top FMC official said here.
"We have approved futures trade in iron ore today.
Commodity exchanges will launch four contracts initially," FMCChairman B C Khatua told PTI here.
Multi Commodity Exchange of India Ltd (MCX) and IndianCommodity Exchange (ICEX) are set to launch iron ore futurescontract after it receives notification from the marketregulator.
This will be the world''s first iron ore futurescontract, whereby traders, miners and importers are expectedto participate in a big way, ICEX''s chief executive officer(CEO) Sanjay Chandel said.
The iron ore contract is export-grade as well, andhence lot of importers have also shown keen interest in thecontract.
ICEX has joined hands with Federation of IndianMineral Industries (FIMI) to promote an efficient iron orefutures market. "ICEX and FIMI would cooperate to createproduct awareness and promotion of iron ore and other mineralsfutures trading and derivatives," Chandel said.
ICEX had recently signed a Memorandum of Understanding(MoU) with the Singapore-based Iron Ore and Steel DerivativesAssociation (IOSDA), for the growth and development of ironore and steel derivatives.
"MCX is ready with iron ore contracts. We have MOU inplace with our Indian partner and we are talking to iron oreexporters and users, who will participate once we launch ironore futures contract," MCX Managing Director and CEO, LamonRutten said.
India produces nearly 225 million tonnes iron ore ayear and consumes 55 per cent of it, the rest being exported,mainly to China.