Tokyo Commodity Exchange (TOCOM) today signed a memorandum of understanding with the Mumbai-based Multi-Commodity Exchange (MCX), for mutual co-operation, information sharing, training in risk management and market development. | |
| TOCOM is looking at launching Indian rubber contracts on the exchange with delivery centres in India provided both the Indian and Japanese governments permit international trading in commodities. |
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| Similarly, MCX would also be looking at launching TOCOM energy products including gasoline, kerosene and fuel oil. |
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| The managing director of MCX, Jignesh Shah said information sharing would lay the foundation for future developments. |
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| MCX would benefit from partnering with a leading exchange like TOCOM, which has 20 years of experience. |
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| The exchanges are also looking to form a joint co-ordination committee to develop a common Asian margining and clearing arrangement. |
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| The Union minister of agriculture, consumer affairs, food and public distribution, Sharad Pawar, said at the signing ceremony, "India should become a trend setter in respect to the price or the demand and supply in at least five major commodities." |
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| Internationally commodity exchanges allow trading in indices, energy products, weather futures, freight futures and interest rate derivatives among others, Pawar added. |
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| Indian traders should pay equal attention to global commodities like gold, silver and crude besides agriculture. This, he said, would help the country emerge as a global trading hub between Tokyo and London. |
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| The president of TOCOM, Hamada Takamichi, said the exchange's west Asian crude oil futures would be better suited to serve as a benchmark price in the Asian oil market rather than the WTI (West Texas Intermediate) price at NYMEX. |
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| In addition, the demand supply situation in the US, which drives the NYMEX WTI, was different from the Asian situation. |
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| TOCOM has strategic understandings with seven global exchanges like the Singapore Exchange (SGX), New York Mercantile Exchange (NYMEX), Korean Futures Exchange (KOFEX), China's Dalian Commodity Exchange (DCE), the London-based International Petroleum Exchange (IPE) and the Taiwan Futures Exchange (TAIFEX). |
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