Consolidated spot prices for various commodities, which are generally used as a benchmark for futures prices, could be a reality in the next couple of years.
Currently physical prices of various commodities that are gathered by futures exchanges indicate considerable differences.
Speaking at the launch of the composite live commodity futures index by Multi Commodity Exchange and Refco, chairman of the Forward Markets Commission, the regulator of the commodity markets, S Sundareshan said that the matter would come up for discussion at the next meeting of the co-ordination committee, which was set up for the future development of the exchanges, that comes up in July.
Sundareshan also mentioned that a system should be developed whereby all the futures exchanges can coexist peacefully without poaching on each others' territories.
He confirmed that the final round of consultations to amend the Forward Contracts Regulation Act is also set to take place, which would tackle the issues of permitting trading in options as well as index trading.
The new index launched is called the MCX-COMDEX, and comprises futures contracts drawn on metals including gold, silver and copper, agri-commodities including wheat, urad, soya oil, rubber, guarseed and kapas and energy.
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