MCX to partner CME group for international exchange at GIFT City
India’s largest commodities exchange platform, Multi Commodity Exchange of India Limited (MCX) has signed a MoU with the US based CME group to set its operations in GIFT City in Gujarat.
Chicago Mercantile Exchange (CME) the world’s largest US futures exchange company and MCX will initially conduct a joint viability study of setting up operations in an International Finance Service Center (IFSC) in India.
India’s big exchange platforms like National stock Exchange (NS), Bombay stock Exchange (BSE) and commodity exchange NCDEX had already announced it plans for operations in GIFT, the first IFSC in India and now MCX has also joined them.
MCX expects that this partnership will fetch the marketplace with best practices and much diversified product slate to the stakeholders of Indian commodities markets.
CME’s expertise will help MCX for identifying and providing suitable products to stakeholders and more specifically to small and medium enterprises that at the moment cannot participate in international exchanges.
It should be noted that CME was trying to entre in Indian Exchange market last many year, it is in business relations with MCX since 2005 and on this eve of agreement with MCX, CME will make its biggest investment in Indian Exchange market.
- According to MoU both will work to establish a joint working group that will explore opportunities for product development and to market new products and services for the US and Indian markets.
- Together they will make efforts to educate customers regarding commodity market in India and US.
- According to the MoU the MCX’s licensing agreement was extended which enables MCX to settle their rupee-denominated oil and gas contract to CME Group’s NYMEX prices.