The Coffee Futures Exchange of India (COFEI) is headquartered
at Bangalore, India  and
was set up on December 22, 1997 by the participants in the coffee
industry in India to facilitate trading in Coffee Futures. It
is registered with the Registrar of Companies, Karnataka State
at Bangalore under the Companies Act, 1956. COFEI is a self
regulatory organization under the supervision of the Forward
Markets Commission (FMC). The FMC has been constituted by the
Ministry of Food & Consumer Affairs of the Government of
India to oversee all commodity futures markets. COFEI was registered
with FMC on February 13, 1998.
COFEI is a non-profit organisation and is essentially set up
to enable trading in Coffee Futures. COFEI came into existence
as a domestic futures exchange due to the need felt by the coffee
industry after de-regulation of the coffee marketing system
from 1996. Until then, under the provision of  Coffee
Act, the entire produce of coffee in India had to be compulsorily
delivered to the Coffee Board of India for marketing in the
domestic and export markets. Indian coffee production and trade
is worth over Rs. 21,000 Crores annually. Coffee being the second
largest actively traded commodity in the world market, Indian
coffee is exposed to the high volatility in prices.
COFEI is managed by an elected Board of Directors who are assisted
in the day-to-day functioning of the exchange by a set of Standing
Committees.
COFEI's main objectives are:
Provide a mechanism for price discovery
Provide a tool for hedging against price risks
Ensure guaranteed performances through standardised forward
contracts through the Clearing House, being a counter party
to the transactions of its
members .
Unique features of COFEI's futures
trading include
COFEI is counter party to both buyers and sellers and thus guarantees
performance
The Clearing House is part of COFEI and not a separate
entity
All Clearing Members are shareholders of COFEI
Daily marking to market of all trades enables COFEI to
function with least risk
All deliveries relating to trade at COFEI are effected
from Certified Warehouses recognised and approved by COFEI.
Certified Warehouse system guarantees quality and quantity
of coffee delivered.
COFEI commenced trading from June 19,1998. Trading is by an
"open outcry" system with post trade operations
being fully computerised.
COFEI has four categories of members:
Institutional Clearing Members (ICM) who can clear on behalf
of others but cannot trade
Trading cum Clearing Members (TCM) who can trade on their
own account and on account of others. TCMs can also clear
trades
Trading Members (TM) can trade on their own account and
on behalf of others but cannot clear trades
Ordinary Members (OM) can have trades executed on their
behalf by TM/TCMs.
A non member can also trade at the exchange through a Trading/Trading
cum clearing member.
For further information, contact:
COFFEE FUTURES EXCHANGE INDIA LIMITED,
Bangalore Stock Exchange Annexe,
1st Floor, # 51, 1st cross
J.C. Road, BANGALORE - 560 027
E-mail: cofei@vsnl.com
Website: www.cofei.com
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