National Multi Commodity Exchange launches forward trading in rubber

KOCHI: The Ahmedabad- based National Multi Commodity Exchange ( NMCE) has launched auction-based forward contracts in rubber, which can be done online using special software. The process is expected to help the rubber trade, which is currently reeling under a prolonged price crash, in the long run.

Under the scheme which was rolled out in Kochi the seller of the rubber could initiate his own auction in which he could put his minimum price for the participants to bid. The location and the period of delivery would be set by the seller.

It is different from futures as the commodity is sold at the best price obtained through bidding. The contract would be for at least 12 days forward, said NMCE MD and CEO Anil Mishra. Unlike futures the forward contract delivery could be made for any grade from multiple locations. NMCE has reduced the exchange fee by 50% for the first three months.