MCX (Multi Commodity Exchange of India Ltd.) registered the highest single-day turnover of Rs 29.31 crore (single-side) in all Rubber contracts on Friday, December 15.
On the same day, the traded volume was recorded at 3,271 tonnes with open interest of 902 tonnes.
Rubber is a compulsory delivery contract with penal provisions for non delivery. From January 2007 contracts onwards, penalty on buyer and seller has been increased to 15 per cent from the earlier rate of 5 per cent on seller and 10 per cent on buyer.
“This will provide level playing field for all market participants and increase participation from physical market players.” Said Mr. Ashok Mittal, Vice President, Karvy Comtrade.
The exchange has commenced futures trading in Rubber March 2007 contracts with effect from Saturday (December 16). As per the contract specification of Rubber March 2007, the number of additional delivery centers in the Kerala state has been increased to three which are Calicut, Trichur and Kottayam.
“The additional delivery centers are mainly in rubber growing centers of Kerala. With more number of delivery centers, farmers will be able to sell their goods through the MCX platform,” said an MCX an official.
As per the contract specifications, price quote is Ex-Kochi and certified quality is Ribbed Smoked Sheets 4 (RSS-4) daily price limit is 4 per cent, and Initial margin is 5 per cent and tick size is One rupee. Trading unit and delivery unit is one metric tonne.
