 "BSE signs pact with LME, to facilitate sharing of market resources")
The country's leading bourse BSE Wednesday said it has entered into a licensing agreement with the London Metal Exchange (LME), a move that will facilitate closer cooperation in areas such as product development, training and sharing of market resources.
The LME is the world centre for the trading of industrial metals the majority of all non-ferrous metal futures business is transacted on LME platforms.
The agreement will facilitate closer cooperation in areas such as product development, training and the sharing of market resources, BSE said in a statement.
The licensing agreement will also allow BSE to use the prices of LME's base metals contracts to price its proposed base metals futures contract, it added.
"The agreement will enable a better understanding of the market dynamics of the base metals industry in India. It will integrate the Indian market with the global market more effectively and foster world-class best practices in commodity derivative market.
"It will enable us to work together towards our mutual interests, enhance business opportunities, extend global reach and will gradually result in benefits for our customer base and also help in bringing exciting products to the Indian marketplace," BSE MD and CEO Ashishkumar Chauhan said.
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Markets regulator Sebi on December 28 last year announced that from October 1, 2018, the country would have a unified exchange regime wherein stock exchanges would be allowed to offer trading in commodities derivatives.
The BSE has begun trading in commodity derivatives from October 1 with non-agriculture commodities like metals initially, followed by agri commodities subsequently.