Trading system

First Commodities Exchange of India Limited is an on-line commodity exchange, driven by de-mutualised management and best global practices, professionalism and transparency. FCEI is regulated by the Forward Markets Commission (FMC) and is subject to various laws like Forward Contracts (Regulation) Act, Companies Act, Contract Act and local legislations were ever applicable.

FCEI is located in Kochi and offers facilities to its members to trade from anywhere through internet. Clearing and settlement is carried out by the clearing house through clearing banks – The Federal Bank and  Indusind Bank. Daily computerized online clearing based on Mark to Market price. Settlements are guaranteed through Trade Guarantee Fund. Trade limits are fixed  with pre-margin limits.

Contract specifications

There shall be twelve contracts each for a particular commodity  in a year (contract specifications shall be different in diverse commodities).All twelve calendar months shall be the twelve commencement months,All twelve calendar months shall be the twelve contract months.19th of every month is the  cut off date for the contract.

Advance margin system

FCEI follows advance margin system for trading on-line. Margin account with the clearing banks are compulsory for forward trading. “Margin” in commodity markets represents a “good faith” deposit which can be used to cover adverse movements in prices for futures. Margins are set taking into consideration price risk and volatility of the commodity at the point of time. Margins are not partial payments for a purchase