India's Multi Commodity Exchange and Shanghai Futures Exchange sign MoU

Source: Multi Commodity Exchange of India

Multi Commodity Exchange of India (MCX), the global leader in silver futures trading and among the world’s top five exchanges in gold, crude oil and natural gas futures trading, and Shanghai Futures Exchange (SHFE) of China today signed an MoU to share knowledge and expertise for further development of their exchange ecosystems.

The MoU was signed by Lamon Rutten, joint managing director of MCX, and Madam Wang Lihua, chairperson of SHFE, at the Pudong Shangri-La Hotel, Shanghai, China.

In order to ensure that the advantages of an efficient futures market are made available to the entire spectrum of users within and outside their respective countries and subject to the necessary regulatory approval, MCX and SHFE will share experiences, business rules, byelaws and regulations. This will include information on futures contracts traded on the exchanges along with delivery terms and conditions and risk management procedures.

Other terms stipulate official exchanges for greater expertise sharing and training of exchange personnel, sharing of delayed trading data that emanate from each exchange for internal use of the other exchange and their members, coordination of local industry efforts in consultation with each other to enable industry participants face competition and manage price risk better.

Mr Rutten said: "SHFE has established a very efficient futures market in metals and other commodities and will share its experience with MCX, which itself has developed a potent futures market in bullion, base metals, energy and agricultural commodities. MCX will share its experiences in these sectors with SHFE."

Madam Wang Lihua stated, "The Shanghai Futures Exchange has been dedicated to knowledge sharing and cooperation with counterparts both at home and abroad and is eager to learn from overseas derivatives markets in terms of their success in product and system innovation. As the world's exchanges step up industry consolidation amid the trend of increasing economic globalization, the Shanghai Futures Exchange has taken an important step by joining hands with MCX and forming a strategic partnership. The singing of the MoU between the two exchanges will enable both sides to exchange information, engage in constructive cooperation and take advantage of each other's strengths."

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