NCDEX develops rainfall index – The Hindu BusinessLine

The rainfall index, is a precursor to a weather derivative that would be introduced subsequently from the NCDEX platform.

With southwest monsoon just close to the corner, the country’s main agri-commodity bourse NCDEX on Sunday mentioned it has designed rainfall index, a software to monitor the development of monsoon.

Just after having responses from market place stakeholders, the exchange will launch the rainfall index for trading as a derivative instrument, it mentioned.

Both farmers and commodity traders can choose positions on this index as the instrument can be utilized as a hedge versus excess or deficient rains.

“I feel a rainfall index is an simpler 1 to try and could be much more applicable to glance at and start publishing. Just after we get much more responses, we will glance at other weather parameters,” NCDEX Taking care of Director and CEO Vijay Kumar advised PTI in an job interview.

The style and design of the rainfall index is nearing completion, he mentioned.

“After we publish, we will interact with participants and get the responses in terms of how folks want to use it and what profit they see and what purposes they have. Then we style and design the products for trading,” he included.

Kumar mentioned the exchange will just offer rainfall details on the index originally. It will be for reference by yourself and not a tradable instrument.

The rainfall index, in simple fact, is a precursor to a weather derivative that would be introduced subsequently from the NCDEX platform.

Final month, NCDEX experienced introduced ‘Agridex’ that tracks and replicates the efficiency of the 10 most liquid commodities traded on the NCDEX platform.

There has been lively trade in Agridex proper from the working day 1 and much more institutional gamers have shown fascination in this products, he included.

Published on


June 07, 2020

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