02.08.2013 - India: Do commodity markets need better regulation?
The recent woes of National Spot Exchange Ltd (NSEL) have put the spotlight on the world of commodity trading. The exchange has had to abruptly suspend trading in a large number of its contracts as well as defer the settlement of trades that have already been executed. This resulted in rumours of a settlement crisis, leading to a 66% drop in NSELís parent company, Financial Technologies (India) Ltdís (FTIL) shares. The fear was that FTIL might have to make good NSELís settlement obligations, but according to the head of a large domestic trading house, the exchange is essentially facing a liquidity crisis.........................................Full Article: Source
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