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BCE to join hands with HDFC, GTB to start e-banking

Sunanda Sanganeria

After starting online trading in edible oils, the Bombay Commodities Exchange is now joining hands with HDFC Bank and Global Trust Bank to facilitate fund transfer through electronic banking to expand its futures trade to other cities.

The exchange is also in talks with Dow Jones to access commodity prices of Chicago Board of Trade and Kuala Lumpur Commodities Exchange in order to expand globally.

The Bombay Commodities Exchange has also applied to the Forwards Markets Commission for permission to start tea futures. It is currently discussing the possibility of joint trading in palm oil with Malaysia.

Speaking to Business Standard, Anjani Sinha, chief executive officer of the exchange, said: "Apart from Mumbai, trading houses from Delhi, Kanpur and Ahmedabad also want to finalise their contracts on the BCE. At present, if a broker in Delhi wants to trade, he has to open an account in Mumbai and transfer money on a daily basis. To remove this difficulty, we will be starting the e-banking system with HDFC Bank and GTB."

He said the e-banking facility would be functional by the last week of January.

BCE had started online trading from November 25 on its Internet site 'www.bceindia.com' in castor seed and RBD palmolein. Sinha said that a daily volume of around Rs 7.5 million to Rs 10 million were being traded and the turnover of volumes in the last one month after the online trade commenced was around Rs 80-90 million.

"Most of our brokers have moved from open outcry system to screen-based trading and BCE will soon phase out the outcry system," he said.

To expand the futures trade in palm oil, BCE was in talks with the Malaysian exchange. "We have contracts in RBD palmolein while Malaysia has in crude palm oil. Therefore, we are discussing the possibility of a synergy in the exchanges wherein their brokers can trade on our exchange and vice-versa," he said.

Moreover, to keep brokers up-to-date with the latest global commodity prices, BCE will access quotes from CBOT and KLCE. "The impact of the KLCE is high on the Indian markets because both the exchanges function at the same time. It will help the brokers to finalise their spot and futures contracts," Sinha added.

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