MCX signs MoU with Shanghai Futures Exchange

13 June 2007

Mumbai: The Multi-Commodity Exchange of India Ltd (MCX), world''s third largest bullion exchange, has signed a memorandum of understanding (MoU) with Shanghai Futures Exchange (SHFE) of China to share product knowledge management.

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 .

The two exchanges will share expertise, delayed trading data and train each other''s personnel, MCX said in a statement.

It will also include information on futures contracts traded on the exchanges along with delivery terms and conditions and risk management procedures.

MCX is now third largest bullion exchange after New York Metal Exchange and Tokyo Commodity Exchange. Total average daily bullion trading in the Indian commodity exchange is between Rs5,000 and Rs5,500 crore," according to MCX VP (product knowledge management) Sameer Patil.

Daily average gold trading was around Rs3,000 crore, while trading size for silver was between Rs2,000 and Rs2,500 crore. In terms of trading volume, the MCX turnover was just 10 per cent of NYMEX and around 25 per cent of TOCOM, Patil had said on the sidelines of a seminar on futures trading on June 10.