Exchange traded forwards for Financial Investors

EXCHANGE TRADED FORWARDSFINANCIAL INVESTORS

Challenges Faced by Financial Investors

2

Suboptimal use of resources ,

inability to maximize business

opportunities

Complexities in the physical

markets

Operational difficulties in the cash and carry model

Opportunity cost due to inefficient investment

choices

Inconvenience in liquidating

stocks

Complexities in the physical markets

3

Scattered nature of physical market activities: Non-availability of assaying, storage, credit facilities under one roof

Fragmented market structure

Not being able to capitalize on potential business opportunities &Increased operational cost

Inconvenience in reaching desired buyers/sellers

Restricted geographies and commodities

Complexities in the physical markets

4

Online Trading – national market access

Reduced operational expense: Single point access to storage, assaying,

clearing & settlement

Opportunity to trade in multiple commodities

Additional tool for expansion of business & revenues

Effective alternative

Operational difficulties in the cash and carry model

5

•Discomfort of trading in mandis

•Inconvenience in reaching out to right buyers for sourcing desired goods as well as for getting optimal price

•Additional deployment of man-power and funds for carrying out business operations, contract negotiations, paper work; etc.

Administrative Hassles & Increased

operational cost

•Opportunity lost due to difficulty in seamless synchronization of physical market operations to trading on futures platform

•Restricted buyer base: sub-optimal cost of procurement

Restricted arbitrage

opportunities

Operational difficulties in the cash and carry model

6

Arbitrage @ a click

Online availability of physical and futures market bid-ask quotes

Operational ease, Access to pan-India market & expanded bunch of commodities

Online Trading

Additional trading avenues (Forwards / Futures)

Effective alternative

Opportunity cost due to inefficient investment choices

7

Simplified operations

Efficient arbitrage execution

Online tradingAccuracy in calculating

arbitrage

Additional tool for expansion of business

& revenues

Inability to maximize returns

Effective alternative

Inconvenience in liquidating stocks

8

Selling the stocks sub-optimal prices

on FED

FED StocksInconvenience in

reaching right set of buyers

Sub-optimal Profits

Inconvenience in liquidating stocks

9

Increased trading efficiency

Availability of liquid national trading platform

Ease of purchasing/selling goods to net off positions in futures market

Online trading

Effective alternative

Exchange Traded Forwards –ONE STOP SOLUTION to accelerate efficiency and growth

10

Trading on regulated platform –Provision of

compensation Online Trading

- increased confidence to

trade

Option of Assaying – Assured quality -

easy fungibility

Fixed and reference price

contracts

Delivery through

COMTRACK

Hassle-free cost effective membership

Flexible contract duration,

availability of stocks of different

validities

New Revenue Source

11

Pan-India market access

Maximizing Profits

Members

Diversified Client Base

Retail

SME

Large Corporates

New Revenue Source

Thank You

For information on Exchange Traded Forwards Contact at

Toll free no.: 1800 210 2339

E-mail: [email protected]

website: www.ncdex.com