The present study documents the finding of a survey of brokers’ perception pertaining to the recently introduced commodity derivatives market in India. The survey results show the brokers’ assessment about trading/marketing activities and their perception of the benefits and concerns about commodity derivatives. It also throw some light on the perception of brokers about the efficiency of Indian commodity derivatives in performing the functions of price discovery, hedging effectiveness and volatility dynamics. The survey results show that high net worth individual are contributing significantly in the trade volume of commodity derivatives. Interestingly, retail investors are also emerged as the significant contributor in total turnover of brokers. Survey results exhibit that price discovery and hedging effectiveness functions are well performed by all the commodity futures except the energy commodities futures. Energy commodities, being the most volatile commodities, are perceived as having less hedging effectiveness as compared to others. Brokers are assenting on the high to moderate impact of open interest, volume and time to maturity on the volatility of the commodity futures derivatives.
Morgan, J. (1995, May 4) ‘Article on derivative market’, Financial Times.
Acharya, V. V., Brenner, M., Engle, R., Lynch, A., & Richardson, M. (2009) ‘Derivatives‐The ultimate financial innovation’, Financial Markets, Institutions & Instruments, 18:2, pp. 166-167..
Aggarwal, N., Jain, S., & Thomas, S. (2014) ‘Do futures markets help in price discovery and risk management for commodities in India?’, Working paper No. 2014-020. Indira Gandhi Institute of Development Research, Mumbai, India..
Alagu Pandian, V. (2013) ‘A Study of Investors Preference towards Various Investments Avenues in Dehradun District’, International Journal of Management and Social Sciences Research, 4:1, pp.58-66..
Anand, M., and Kaushik, K.P. (2008) ‘Management Motivations for Use of Foreign Currency Derivatives in India’, IIMB Management Review, 20:3, pp. 324-339..
Bose, S. (2007) ‘Commodity Futures Market in India: A Study of Trends in the Notional Multi-Commodity Indices’, Money & Finance, ICRA Bulletin, 3:3, pp. 125-158..
Gupta, S., Choudhary, H., & Aggarwal, D. R. (2015) ‘Volatility Characteristics of Indian Commodity Futures: An Empirical Analysis of MCX Indices’, Asian Journal of Research in Banking and Finance, 5:9, pp. 27-43. http://dx.doi.org/10.5958/2249-7323.2015.00113.3..
Gupta, K.S., and Rajib. P. (2012) ‘Samuelson Hypothesis & Indian Commodity Derivatives Market’, Asia-Pacific Financial Markets, 19:4, pp. 331-352..
Gahlot, R., & Datta, S. K. (2011) ‘Views of Brokers on Derivatives Trading in India: Issues and Challenges’, International Journal of Financial Management, 1:4, pp. 53..
Hathway, K. (2007) ‘The Potential Effects of Government Intervention in a Market Economy” Report submitted by Financial Markets International of Washington, DC, and Mumbai, India, April 2007, Inoue, T., & Hamori, S. (2014) ‘Market efficiency of commodity futures in India’, Applied Economics Letters, 21:8, pp. 522-527..
Iyer, V. and Pillai, A. (2010) ‘Price discovery and convergence in the Indian commodities market’, Indian Growth and Development Review, 3:1, pp. 53-61. http://dx.doi.org/10.1108/17538251011035873..
Kindleberger, Charles P. (1996) ‘Manias, Panics and Crashes – History of Financial Crises’, John Wiley and Sons..
Kumar, B., & Singh, P. (2008) ‘Volatility modeling, seasonality and risk-return relationship in GARCH-in-mean framework: the case of Indian stock and commodity markets’, In The 5th Conference of Asia-Pacific Association of Derivatives Paper..
Kumar, B., Singh, P. & Pandey, A. (2008) ‘Hedging effectiveness of constant and time varying hedge ratio in Indian stock and commodity futures markets’, IIMA Working Paper 2008-06-01, pp. 1-35. http://dx.doi.org/10.2139/ssrn.1206555..
Maitra, D. (2014) ‘Do volume and open interest explain volatility?: An inquiry into the Indian commodity markets’, Journal of Financial Economic Policy, 6:3, pp. 226 – 243..
Pati, P. C. (2006) ‘Maturity and volume effects on the volatility: Evidences from NSE fifty futures’,In 10th Capital Markets Conference, Indian Institute of Capital Markets Paper. Roy, Ashutosh (2006), Indian Agri Commodity Market, Risk Management and its Sustainable Growth: An Integrated Framework, Online available on: http://ssrn.com/abstract=1178702..
Sehgal, S., Rajput, N., & Deisting, F. (2013) ‘Price discovery and volatility spillover: Evidence from Indian commodity markets’, The International Journal of Business and Finance Research, 7:3, pp. 57-75..
Shunmugam, V., & Praveen, G.D. (2007, January 4). The index of commodity futures investing..
Business Line. The Hindu. Retrived from http://www.thehindubusinessline.com/todays- paper/tp-opinion/the-index-of-commodity-futures-investing/article1645503.ece..
Srivastava, S., Yadav S. S., and Jain, P. K. (2008) ‘Derivative trading in Indian stock market brokers perception’, IIMB Management Review, 20:3, pp. 311-323..
Srinivasan, P., & Ibrahim, P. (2012) ‘Price Discovery and Asymmetric Volatility Spillovers in Indian Spot-Futures Gold Markets’, International Journal of Economic Sciences and Applied Research, 3:1, pp. 65-80.
| Periodicity | Biannually |
| Issue-1 | May |
| Issue-2 | November |
| ISSN Print | 2321-2217 |
| ISSN Online | 2321-2225 |
| RNI No. | CHAENG/2013/50088 |
Publisher's policy of the journal at Sherpa UK for the submitted, accepted, and published articles. Click OAPolicy
Plan-S ComplianceTo check compliance, one has to use the Journal Check Tool (JCT). This tool provided by cOAlition S (European funders) for the researchers (fundee) to check the compliance with the journal.
Recommend journal to your libraryYou can recommend the journal being a researcher or faculty member to your library. We will post a copy of the Journal to your library on your behalf at free of cost.
Click here: Recommend Journal
The authors are encouraged to submit the author’s copy (preprint) to appropriate preprint archives e.g. https://arxiv.org and/or on https://indiarxiv.org or institutional repositories (e.g., D Space) before paper acceptance by the editor of Journal. After publications of the paper author(s) should mention the citation information, title and abstract along with DOI number of the publication carefully on the required page of the depository(ies).
Contact: Phone: +91-172-2741000, +91-172-4691800
Email : editor.tmg@chitkara.edu.in;
This work is licensed under a Creative Commons Attribution 4.0 International License.
View Legal Code of the above-mentioned license, https://creativecommons.org/licenses/by/4.0/legalcode
View Licence Deed here https://creativecommons.org/licenses/by/4.0/
Journal of Technology Management for Growing Economies by Chitkara University Publications is licensed under a Creative Commons Attribution 4.0 International License.
Based on a work at https://tmg.chitkara.edu.in/
Chandigarh-Patiala National Highway, Punjab 140 401
Chandigarh Information Center SCO 160-161, Sector 9-C, Chandigarh 160 009
