MCX in pact with Euronext for futures

The Multi Commodity Exchange (MCX) has signed a licensing agreement with Euronext.liffe, a derivatives business of Euronext, to use the latter's futures prices.

The agreement will allow MCX to list domestic mini futures contracts for both robusta coffee and white sugar based on Euronext.liffe futures prices. Both the exchanges will also identifying other areas of potential collaboration.

Hugh Freedberg, CEO, Euronext.liffe, said, "The agreement will help in the provision of effective risk management tools to the domestic Indian sugar and coffee industries."

Euronext.liffe is the derivatives business of Euronext, comprising the Amsterdam, Brussels, LIFFE, Lisbon and Paris derivatives markets. The bourse witnesses business worth over 1,500 billion euros daily and is world's second largest derivatives exchange, by value of transacted business.

"With its member and client network spread across the country, MCX will offer the mini futures to every stakeholder in the industry. The domestic industry can now contribute in the global price discovery process by actively discounting the domestic fundamentals in the Indian time zone and in the process benefit from fair prices," said Jignesh Shah, MD and CEO, MCX.

The commodities listed on the Euronext.liffe includes cocoa, robusta coffee, white sugar, feed wheat, milling wheat, rapeseed and corn.