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June 04, 2013

GLOBOIL INDIA 2014. Mumbai. Ashish Srivastava Head- Quant & Market Structure. June 04, 2013. National Commodity & Derivatives Exchange [NCDEX]. Largest Agri - Commodities Exchange in India Serves as a lubricant to the real economy and value chain operations

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June 04, 2013

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  1. GLOBOIL INDIA 2014 Mumbai AshishSrivastava Head- Quant & Market Structure June 04, 2013

  2. National Commodity & Derivatives Exchange [NCDEX] • Largest Agri- Commodities Exchange in India • Serves as a lubricant to the real economy and value chain operations • Trust, Infrastructure & Liquidity • Efficient Price Discovery [ advantages to Value chain]

  3. Current Concerns • Low Volatility • Bearish Trend

  4. Current Concerns • Low Volatility • Bearish Trend Less trading Opportunities ??? No need to hedge ???

  5. Agriculture Portfolios

  6. Initiatives & Innovations June 04, 2013

  7. Forward Contracts India’s First Exchange Traded Forward Contracts, intend to provide flexibility of OTC Market with the safety of an exchange • A] Reference Price Contract: Priced at a premium/ discount to NCDEX futures contract based on the specification of the forward contract • B] Fixed Price Contract: Entered at a flat price and specification

  8. Unique Features & Advantages • Large Market • Increased Liquidity • Flexibility • Multiple Options for Delivery • Better Inventory Management • Professional Risk Management • Compensation Guarantee

  9. NCDEX Spread Order System Unique System: First of its kind in Asia : Designed for transparency & faster execution Calendar Spread Limit Order:

  10. Unique Advantages • Transparency • Price-Time Priority • Order Book • No leg risk - Exchange guarantees execution • Razor thin bid-ask spread • Easy, fast and efficient fills • Trade execute in the underling order book • Massive Depth & Liquidity • Spread trades can be matched with outright contracts as well as with other spread orders

  11. Order Book & Depth

  12. Why Spreads ? • Less Risky [Hedged Position] • Margin Benefits [No regulatory margins] • More predictable and mean-reverted • More/frequent trading opportunities • Multiple combinations • Volatility relatively independent of underling volatility • Better Risk - Return profile • Cost effective and easy roll-overs [hedgers & Position traders]

  13. Castor seed: Intra-day Calendar Spread

  14. Soy bean - Mustard Spread

  15. Soy bean – Oil Crush

  16. : Advanced Charting Tool

  17. Thank You June 04, 2013

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