Singapore Commodity Exchange Limited (SICOM) and the National Commodity & Derivatives Exchange Limited (NCDEX) of India are pleased to announce the signing of a Heads of Terms agreement to co-operate and enhance the development of their commodity markets.
The Heads of Terms for the proposed SICOM-NCDEX co-operation will be signed at a ceremony in Singapore on 26 May 2009 at 10.30am, witnessed by Mr Lim Hng Kiang, Minister for Trade and Industry, Singapore; Dr. K. N. Raghavan, First Secretary (Commerce), High Commission of India, Singapore; and Mr J Y Pillay, Chairman of Singapore Exchange.
The proposed co-operation will enable designated products to be traded and cleared in both exchanges. In addition, NCDEX will make available its agricultural commodity index to SICOM to create derivative products. This would make SICOM the first exchange outside India to trade NCDEX's products and NCDEX the first exchange outside Singapore to trade SICOM's products. The exchanges will designate new products to the co-operation in response to market demand and jointly market and promote these designated products. SICOM and NCDEX are confident that the co-operation will grow their respective markets as it provides participants convenient trading access to both exchanges.
Further areas of the proposed collaboration include the development of new products, information exchange, market research and the facilitation of crossmembership access. Regulatory approvals for these initiatives will have to be obtained where necessary.
"We are delighted to be in partnership with NCDEX, the largest agricultural commodity exchange in India. We believe this will widen the product offering and market access for our respective market participants. The co-operation with NCDEX is in line with our alliance strategy to work with like-minded partners. It also underscores SICOM's position as a trusted marketplace and gateway to Asia. This partnership reflects the longstanding and strong relationship between India and Singapore," said Mr Jeremy Ang, Chief Executive Officer of SICOM.
"NCDEX is extremely pleased to work with SICOM. We are seeing the entire focus of attention of commodity trading shifting towards the Asian region where our two countries will be providing the platforms for trading to a wider cross-section of traders across the globe through this agreement," said Mr R. Ramaseshan, Managing Director & Chief Executive Officer of NCDEX.
He added, "Singapore's world class infrastructure, highly reputed regulatory framework and the advantage of Asian trade timings will add depth to the market segment catered by this agreement. India is one of the fastest growing centres for all major agricultural commodities and global markets can now get a flavour of Asian and Indian commodities through Singapore. We also see this agreement as part of the efforts to improve bilateral relationship between the two nations under the CECA (Comprehensive Economic Cooperation Agreement) agreement and showcase India's strength in the field of agriculture".