The New York Mercantile Exchange, Inc. (NYMEX), and the Multi Commodity Exchange of India Limited (MCX) announced today that they have signed a memorandum of understanding to explore areas of cooperation that could mutually benefit the exchanges.
MCX, located in Mumbai, offers light, sweet crude oil and Brent crude oil futures contracts. The exchanges will work together to develop areas of cooperation and business opportunities with the goal of assisting and benefiting the underlying producers, end-users, and investors in their commonly traded products by maximizing the application of itnernational best practices for price risk management and exchange operations.
Nymex President James Newsome said, "We are pleased to work with the Multi Commodity Exchange of India. With the unprecedented demand in Asia, we are proud to work with such a reputable partner to serve this growing marketplace."
Jignesh Shah, MCX managing director and chief executive officer, said, "We believe in the best, and, therefore, we are happy to integrate the Indian energy sector with the best and the largest energy marketplace in the world at a time when all economies are facing an energy crisis. We believe Nymex and MCX will work closely to help the Indian petroleum and petrochemical industries to hedge their price risk more efficiently."