Factors Affecting Success and Failure of Futures Contracts

16672 Words Jul 3rd, 2012 67 Pages
By Owais Javaid Qureshi {321}
MFC Batch 2010-12
Under the guidance of
Dr. Nilanjan Ghosh
Sr. Vice President and Head, Research and Strategy, MCX
Submitted in the partial requirements for the Degree of Masters in Finance & Control
Department Of Business & Financial Studies
University Of Kashmir

Certificate This is to certify that the project entitled “Factors Affecting the Success and Failure of Futures Contracts” is research work done by Owais Javaid Qureshi, under my supervision, during March-April, 2012, submitted to the Department Of Business and Financial Studies, University Of Kashmir in partial fulfillment for the award of the Degree of Masters in Finance & Control

_____________________
Dr.
…show more content…
The Exchange was the fifth largest commodity exchange, among all the commodity exchanges considered in the Futures Industry Association survey, in terms of the number of contracts traded for the six months ended June 30, 2011.
MCX offers more than 40 commodities across various segments such as bullion, ferrous and non-ferrous metals, energy, and a number of agri-commodities on its platform. Today MCX is the world's largest exchange in Silver, the second largest in Gold, Copper and Natural Gas and the third largest in Crude Oil futures, based on the comparison of the trading volumes of our Exchange with those of the leading global commodity futures exchanges in the world, for the calendar year 2010 and the six months ended June 30, 2011.

Background Of the study:
Commodity futures have become very powerful instruments that are being used by many for varied purposes. They provide excellent opportunities to hedgers and speculators. In this regard the exchanges have been trying to develop varied types of products that satisfy the ever growing needs of the futures markets. Futures contracts provide a number of benefits including price discovery, volume (liquidity), and risk transfer through hedging, to name a few. There are also indirect benefits to the economy like the creation of warehouses that store the commodities being traded.
Unfortunately, many of the futures contracts that are introduced in the futures markets do not
Open Document