MCX, CME Group join hands to set up joint working group

Leading commodity bourse Multi Commodity Exchange of India (MCX) said here today that it has signed a deal with global diverse derivatives marketplace CME Group to undertake collaborative efforts in various fields.
Under the Memorandum of Understanding (MoU), there will be a joint viability study of setting up operations at an International Finance Service Centre in India, MCX said in a release here.
There will be various initiatives between MCX and the CME Group, including establishment of a joint working group to explore opportunities to develop and market new products and services for the US and India, as well as collaboration on customer education.

"This agreement gives us the opportunity to build upon the existing relationship between MCX and the CME Group since October 2005. It aims to provide the marketplace with best practices and a much diversified product slate to stakeholders of Indian commodities markets to hedge their risks and better manage their businesses," MCX Chairman Satyananda Mishra said.
"We hope to build on this relationship for achieving a higher level of inclusive growth."
At the same time, MCX and the CME Group also announced the extension of the licensing agreement, which enables MCX to settle their rupee-denominated oil and gas contracts to CME Group's NYMEX prices.

"India is key to our Asia growth strategy, and we have had a strong relationship with MCX since 2005," CME Group Executive Chairman and President Terry Duffy added.