MCX ties up with Shanghai bourse

The Multi Commodity Exchange of India (MCX) and the Shanghai Futures Exchange (SHFE) of China today signed a memorandum of understanding (MoU) to share knowledge and expertise to strengthen the exchanges.

The MCX and the SHFE will share experiences, business rules, bylaws and regulations to ensure that the advantages of an efficient futures market are made available to all the stakeholders.

The tie-up will enable the dissemination of information on futures contracts traded on the exchanges along with delivery terms and conditions and risk management procedures. The other terms of the agreement stipulate official exchanges for greater sharing of expertise and training of personnel, sharing of delayed trading data that emanate from each exchange for internal use of the other exchange and their members, coordination of local industry efforts in consultation with each other to enable industry participants face competition and manage price risk better.

Lamon Rutten, MCX joint MD, said, "The SHFE has established a very efficient futures market in metals and other commodities and will share its experience with the MCX, which itself has developed a potent futures market in bullion, base metals, energy and agricultural commodities. The MCX will share its experiences in these sectors with the SHFE."

Madam Wang Lihua, chairperson of SHFE, said, "The singing of the MoU between the two exchanges will enable both sides to exchange information, engage in constructive cooperation and take advantage of each other's strengths."