MCX to tie up with Tocom

The Mumbai-based Multi Commodity Exchange of India (MCX), promoted by Financial Technologies, will sign a memorandum of understanding (MoU) with the Tokyo Commodity Exchange (TOCOM)on November 4.

The agreement would be one of mutual cooperation-operation and will be signed in the presence of the union minister of agriculture, consumer affairs, food and public distribution, Sharad Pawar.

In September, the silver contracts on the MCX made history by crossing the daily turnover of TOCOM's silver contract, which is the world's second largest bullion exchange.

TOCOM had transacted roughly eighty seven million contracts in 2003, which helped it notch up its position as the world's second largest commodity futures exchange.

MCX is currently India's leading exchange for bullion.

The agreement is expected to be mutually beneficial to the exchanges and will provide deeper insight into product development.

It would also offer MCX members a window to understand more closely the working of international markets.

Presently TOCOM trades in gold ore or gold products, silver ore or silver products, platinum, palladium

aluminum, aluminum ore, aluminum metals, rubber and rubber products, gasoline, kerosene, crude oil and gas oil.

MCX offers products in gold, silver, castor seeds, soya seeds, castor oil, refined soya oil, RBD palmolein, crude palm oil, mustard seed, groundnut oil, mustard oil, cotton seed oilcake, pepper, red chilli, steel long, steel flat, copper, nickel, tin, kapas, long staple cotton and medium staple cotton, channa, guarseeds and various other pulses.