The Multi Commodity Exchange of India (MCX) and the New York Mercantile Exchange (NYMEX) have entered into an exclusive licensing agreement to launch mini-NYMEX energy contracts on MCX. This agreement is in continuation with the earlier alliance signed between the two giant commodities exchanges.The agreement was flagged off by Sharad Pawar, the Union Minister of Ministry of Agriculture, Consumer Affairs, Food & Public Distribution in New York with the traditional ringing of the bell.Richard Schaeffer, chairman, NYMEX and Venkat Chary, chairman, MCX signed the agreement on their respective exchanges behalf.Under this agreement the MCX would be able to launch WTI light sweet crude oil, natural gas, heating oil, gasoline, RBOB gasoline and propane futures contracts of NYMEX. The final settlement of these mini-contracts will be done based on the settlement price of reference contracts on NYMEX adjusted for local duties and taxes and in local currency.Both the leading exchanges had earlier entered into an exclusive memorandum of understanding (MoU) last October to explore areas of co-operation that would be mutually beneficial.While signing the agreement, Venkat Chary said that this development would help the Indian energy market to integrate more clearly with the global energy market, which will be beneficial to the country in the long run."With its pan-India presence, large member and client network spread around the country MCX will offer this mini- NYMEX energy contracts to every stakeholder in the industry, irrespective of size. It will also facilitate the price discovery of these products in the Indian time zone based on local fundamentals," Jignesh Shah, MD & CEO of MCX, said.
