labels: multi commodity exchange of india, investment - general
Chicago Mercantile Exchange eyes alliances in Indianews
23 September 2006

Mumbai: The Chicago Mercantile Exchange (CME) is exploring the possibility of joint trading with Indian commodity exchanges in each other's markets. CME is currently in talks with the major Indian commodity bourses like the Multi Commodity Exchange of India (MCX), National Commodity and Derivatives Exchange Ltd (NCDEX) and National Multi Commodity Exchange of India (NMCE), John P Davidson, managing director and chief corporate development officer, CME, said at an interactive session with Assocham.

He said a high-level CME delegation has held intensive discussions with all the three leading commodities exchanges. However, business prospects would depend more on the policy decision the Indian government takes, he added.

CME, he said, is looking for tie-ups for a variety of partnerships, including technical and strategic.

"India should work out a strategy for processing services. Market markers increases liquidity and India must put in place an appropriate law for facilitating market markers. We would also like to have co-operations in education and training in futures market," he said.

Meanwhile, the Multi-Commodity Exchange of India (MCX) is planning to develop markets for perishables with multiple delivery system in collaboration with New Delhi TV (NDTV).

"The concept of strategic co-operation is essential, as India has not yet opened up direct participation of foreign institutional investors (FIIs) in the commodity exchanges. We have not yet gone for the free float of the rupee. Therefore, strategic co-operation with leading commodity exchanges in the world is necessary," said Joseph Massey, deputy managing director of MCX.

Davidson said the partnerships are aimed at exploring the possibilities of larger alliances for products and commodities that would benefit investors in the US and India in the long run.


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Chicago Mercantile Exchange eyes alliances in India