MFC Batch 2010-12
Under the guidance of
Dr. Nilanjan Ghosh
Sr. Vice President and Head, Research and Strategy, MCX
Submitted in the partial requirements for the Degree of Masters in Finance & Control
Department Of Business & Financial Studies
University Of Kashmir
Certificate This is to certify that the project entitled “Factors Affecting the Success and Failure of Futures Contracts” is research work done by Owais Javaid Qureshi, under my supervision, during March-April, 2012, submitted to the Department Of Business and Financial Studies, University Of Kashmir in partial fulfillment for the award of the Degree of Masters in Finance & Control
_____________________
Dr. Nilanjan Ghosh
Sr. Vice President & Head
MCX Research & Strategy
Exchange Square, Suren Road, Chakala, Mumbai, 400093
Acknowledgement
I thank Multi Commodity Exchange (MCX) for providing me with this wonderful opportunity by offering a summer Internship in their organization.
I would like to thank Dr. Nilanjan Gosh, Sr. Vice President, and Head, Research & Strategy, MCX, for his support & encouragement during the course of internship at MCX.
The special thank goes to my helpful supervisors, Mr. Niteen Jain and Mr. Nazir Moulvi. The supervision and support that they provided greatly helped me in smoothing the whole internship program. The help and support is highly appreciated.
My grateful thanks also go to Mr. Debojyoti Dey, for the constant guidance and help.
I would also like to thank Meenakshi Rokade, Sr. Executive Research & Strategy, and In-charge Library, for providing me with the literature & other necessary items as and when they were required.
Owais Javaid Qureshi
Department of Business & Financial Studies
University of Kashmir
Table of Contents Abstract: 3
Company Profile: 5
Background Of the study: 6 Commodity 7 Few popular types of derivative contracts: 7
Factors
References: 1 Brorsen, W. and Fofana, N. F. 2001. Success and Failure of Agricultural Futures Contracts. J. Agribusiness, 19: 129-145. 2 Gray, R. W. 1966. Why Does Futures Trading Succeed or Fail: an Analysis of Selected Commodities. In Futures Trading Seminar, 3: 115-137. 3 Pennings, J. M. E. and Leuthold, R. M. 1999. Commodity Futures Contract Viability: A Multidisciplinary Approach. OFOR Paper Series Number 9902, p. 1-37, Urbana-Champaign, Illinois, USA. 4 Tashjian, E., 1995. Optimal Futures Contract Design. Quart. Rev. Econ. Finance, 35: 153-162. 5 Sandor, R. L., 1973, “Innovation by an Exchange: A Case Study of the Development of the Plywood Futures Contract,” Journal of Law and Economics, 16. 119-136. 6 Silber. W. L., 1981, “Innovation. Competition, and New Contract Design in Futures Markets,” Journal of Futures Markets, 1, 123-155. 7 Lerner, R. L. 2000. The Mechanics of the Commodity Futures Markets: What They Are and How They Function. Working Paper, Mount Lucas Management Corporation. 10 Pennings, J. M. E. and Egelkraut, T. M. 2003. Research in Agricultural Futures Markets: Integrating the Finance and Marketing Approach. Agr. Econ., 52: 300-308. 13 The National Futures Association, 2006, “Opportunity & Risk: An educational Guide to Trading Futures and Options” 14 Donna L 23 Allison Holland and Anne Fremault Vila, 1997; Features of a successful contract: Financial futures on LIFFE; Bank’s Markets and Trading Systems Division; 181-186 24 Joost M.E 29 Elizabeth Tashjian Johnston John J. McConnell, 1989, Requiem for a Market: An Analysis of the Rise and Fall of a Financial Futures Contract; The Review of Financial Studies, Volume 2, (number 1); 1-23 30 Ahmet K 31 Joost M.E. Pennings and Raymond M. Leuthold; 1999; Futures Exchange Innovations; Reinforcement versus Cannibalism; 32 Kate Hathaway, 2007, “The Potential Effects of Government Intervention in a Market Economy” 35 Joe L. Parcell, 2002, Emerging IP Markets: The Tokyo Grain Exchange Non-GMO Soybean Contract. 36 M 39 Sara Helen Thompson, Philip Garcia, Lynne Dallafior Wildman, 1996, The Demise of the High Fructose Corn Syrup Futures Contract: A case Study:, the journal of futures markets, Vol. 16, No. 6, 697-724 40 Mark J 41 L. Kalavathi Latha Shanker, 1991, “Margin Requirements and the Demand for Futures Contracts”, The Journal of Futures Markets, Vol. 11, No.2, 213-237, 42 Roger W 43 Wednesday, November 18, 2009, Factors affecting Commodity Markets , World of finance:http://vijayasaiptp.blogspot.in/2009/11/factors-affecting-commodity-market.html