| When commodity exchanges launch options contracts, it may lead to some cannibalization, since they are far cheaper to trade and provide higher leverage vis-a-vis futures contracts.
Multi Commodity Exchange of India Ltd’s (MCX) shares have risen by around 40% in the past three weeks. Investors are evidently excited about Securities and Exchange Board of India’s (Sebi) decision to permit trading in commodity options, besides drooling over rumours that Chicago Mercantile Exchange is likely to pick up a stake in MCX........................................Full Article: Source
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