1. HCT Drivers of Volumes Drivers of Volumes

2. HCT Outline of the Presentation Factors leading to higher volumes in certain commodities Factors leading to higher volumes in certain commodities Intended research to understand missing factor in illiquid commodities Intended research to understand missing factor in illiquid commodities Possible solutions that the research may throw up Possible solutions that the research may throw up

3. HCT Volumes - Importance Price Discovery Price Discovery Easy Entry and Exit Easy Entry and Exit Market remains relevant Market remains relevant Difficult to manipulate Difficult to manipulate

4. HCT Agro Commodities with Highest Volumes by Value Guar Seed Guar Seed Chana Chana Soya Oil Soya Oil Pepper Pepper Jeera Jeera Soya Bean Soya Bean Tur Tur Urad Urad Wheat Wheat Sugar Sugar

5. HCT Factors leading to Higher Volumes in Guar, Chana and Pepper Spot Market Dynamics Spot Market Dynamics Awareness Levels of Participants Awareness Levels of Participants Regulatory Impact Regulatory Impact

6. HCT Spot Market Dynamics Many Participants in the Supply Chain Many Participants in the Supply Chain Exporter or Importer Interest Exporter or Importer Interest Existence of parallel futures market Existence of parallel futures market Shelf Life Shelf Life Volatility of prices Volatility of prices India - major supplier or consumer of the commodity India - major supplier or consumer of the commodity

7. HCT Awareness Levels of Participants Contract Specifications Contract Specifications Delivery Mechanism Delivery Mechanism Margins (Initial and Exposure) Margins (Initial and Exposure) Mark-To-Market Margins Mark-To-Market Margins Spot Polling Methodology Spot Polling Methodology Cash-Settlement versus Delivery-based Settlement Cash-Settlement versus Delivery-based Settlement

8. HCT Regulatory Impact Margins Margins Near Month Limits Near Month Limits Open Interest Limits Open Interest Limits Perception of Regulator among Participants Perception of Regulator among Participants

9. HCT Additional Factors Trust enjoyed by Exchange’s mechanisms Trust enjoyed by Exchange’s mechanisms Relevance of contract specifications Relevance of contract specifications Spread of members and terminals within trading region Spread of members and terminals within trading region Availability of delivery mechanism Availability of delivery mechanism

10. HCT Research Methodology Questionnaire- based approach Questionnaire- based approach Questionnaire targeted at traders Questionnaire targeted at traders Results will help us understand what can be done to improve liquidity Results will help us understand what can be done to improve liquidity Focus on following commodities : Focus on following commodities :  Coffee  Groundnut  Mustard Oil  Sesame Seed  Yellow Peas  Cotton  Soya Bean Meal

11. HCT Possible Solutions Market Makers Market Makers One-week Futures One-week Futures Awareness Programs Awareness Programs Improvement in Delivery Mechanisms Improvement in Delivery Mechanisms Futures that are Cash-Settled Futures that are Cash-Settled

12. HCT Thank You