MCX inks licensing pact with NYMEX

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.