What are commodity exchanges?
Commodity exchanges are institutions, which provide a platform for trading in commodity futures’ just as how stock markets provide space for trading in equities and their derivatives. They thus play a critical role in robust price discovery where several buyers and sellers interact and determine the most efficient price for the product. Indian commodity exchanges offer trading in commodity futures’ in a number of commodities. Presently, the regulator, Forward Markets Commission allows futures trading in over 55 commodities. There are 3 national level and 18 regional level commodity exchanges in India . Trading Commodity Futures. A Timeline ——- 1875 Bombay Cotton Trade Association Established 1900 Future Trade in Oil Seeds Started 1920 Gold and Silver Futures Trading started in Bombay 1939 Cotton Derivatives banned by Government 1952 FCRA passed, ban on cotton futures removed 1953 Forward Market Commission Established 1955 Gold and Silver futures trading banned by Government 1980 Go
