New gold contracts launched by NCDEX and now ACE-Exchange, is there enough demand in India? Is there liquidity or people just trading arbitrage?
CTT has killed the liquidity on the commodity exchanges, new contracts on NCDEX and ACE, personally I think will find it very tough to generate any volumes.
An inter exchange arbitrageur will again come in only if there is liquidity at both the exchanges, otherwise he will risk losing rather than making money.
But yeah, interesting times with exchanges competing for the same piece of pie.