The fortunes of the domestic segment of IPSTA, however, still hang in balance as the market regulator has linked the opening of forward contracts beyond October with the full-fledged operation of its Trade Guarantee Fund.

However, the exchange management has approached the FMC, seeking permission for opening at least November futures in case of technical delay in operating the TGF, top officials of IPSTA said. Newly elected president of IPSTA Kishor Shamji told The Financial Express that the fortunes of ICE has taken a turn for the better with the FMC permitting the exchange management to open futures contract in the world's one and only international pepper future trade exchange operated by IPSTA inKochi.

``The opening of forward contracts is a major milestone in the history of ICE,'' he said.

According to Kishor, with the opening of forward contracts, the IPSTA management has put the international exchange on an even keel with the domestic exchange. ``Though the current trade on ICE is mainly done by the domestic players, we expect the participation of foreign players in the near future,'' he said.

The upcoming meeting of the International Pepper Community in Colombo in November and the World Spice Congress in January next may mark a beginning in this regard, he hoped. He said that the FMC has given a conditional clearance to the IPSTA management to open forwards contract beyond October in the domestic segment.

FMC, according to IPSTA president has asked the bourse to open the forward contracts beyond October only after guaranteeing the trade. IPSTA' proposal for setting up a Rs 50-lakh guarantee fund was already cleared by the regulator and is now pending before the Company Law Board for finalclearance.

``We have, however, requested the FMC for permission to open at least November futures, in case of any technical delay,'' the IPSTA president said. He said a vacuum in the forwards market would prove costly for the trade and growers.

Trading on ICE since Wednesday was brisk with a total of 1,625 quintals changing hand during the four days since operation. Exporters, who were worried following the virtual halt of the domestic trade and price spiral, have exuded confidence with the new price signals and price discovery mechanism in place. ``ICE has got a couple of other advantages including a well developed guarantee systems, higher daily position levels, arbitrage opportunities etc,'' a prominent exporter said.