ICEX, FIMI ink pact to develop iron ore futures market

The Indian Commodity Exchange (ICEX) and Federation of Indian Mineral Industries (FIMI) have decided to join hands to promote an efficient iron ore futures market.

ICEX is owned by firms such as Indiabulls Financial Services Ltd and state-run MMTC Ltd, India's largest iron ore trader.

ICEX and FIMI have made significant progress within their own areas for the growth and development of the iron ore market. Now, they have entered into a Memorandum of Understanding (MoU) to mutually share their knowledge and expertise in this regard, ICEX said in a statement here.

"ICEX and FIMI would cooperate to create product awareness and promotion of iron ore and other minerals futures trading and derivatives," ICEX Chief Executive Officer Sanjay Chandel said.

"MMTC, as a major exchange partner on the ICEX platform, will add its physical market expertise for iron ore futures as it is well connected with this segment of iron ore in India," Chandel said.

"This tie-up is intended to increase the awareness of market participants about various aspects of iron ore as a significant commodity in the present arena," FIMI Secretary General R K Sharma said.
    
ICEX, in coordination with FIMI, will organise training programmes and jointly work towards spreading the concept of iron ore and other minerals futures trading among various stakeholders and miners and other participants across the country, it said.
    
"FIMI has deep understanding of the mineral industry and has been the torchbearer for the mining industry in the country. There is a need to establish risk management tools for the industry, for which ICEX has taken pioneering steps. This platform will be made available to all users and market participants like exporters, producers, miners, traders and processing units," ICEX Director Ashwani Sondhi said.