"We have singed an MoU with SDiX, the world's first and only commodity exchange trading in physically settled diamonds or establishing areas of cooperation, between the two exchanges. The MoU was signed at a ceremony in Mumbai today by Mrugank Paranjape, MD & CEO of MCX and Linus Koh, CEO of SDiX," a company statement said here.
The MoU is intended to facilitate cooperation between the two exchanges in areas such as knowledge sharing and research, standardisation of the product for Indian markets and enhancing transparency in pricing, as well as to explore areas for further collaboration between the exchanges.
Moreover, through this partnership, the exchanges have agreed to work towards the goal of assisting the stakeholders in India's diamond industry by bringing international best practices in price risk management and price discovery through innovative spot and derivative market operations, it said.
The MoU will support the mutual interests of MCX and SDiX towards establishing price discovery, enhancing transparency in prices and help the value-chain with a risk management platform, in a commodity like diamond in which India has a significant global presence. The release said.
Alain Vandenborre, Founder and Executive Chairman, SDiX said, "This partnership will help us to further understand India's derivatives market which has grown rapidly in the recent years. Through this opportunity, we hope to achieve a win-win situation for the prosperous development of the markets that MCX and SDiX cater to India's commodity derivatives market.