The Hindu Business Line : NCDEX signs MoU with Chinese bourse

The National Commodity & Derivatives Exchange Ltd (NCDEX) and the Dalian Commodity Exchange (DCE) of China on Tuesday signed a memorandum of understanding (MoU) to form a cooperative relationship that will mutually benefit both the exchanges.

The MoU is expected to bring about results in various areas under the dynamically changing commodity futures environment towards globalisation.

This is the second international tie-up with any Asian commodity exchange, after Tokyo Grain Exchange. The DCE is the second largest soyabean futures market in the world.

Mr Guo Xiaoli, Vice-President, DCE, said, "The exchange is currently trading in five major contracts in soyabean and corn. By signing the MoU and further cooperation with NCDEX, we hope to further strengthen our cooperation on contracts development and services for farmers."

The contemplated areas of cooperation include information sharing and knowledge management; both exchanges also agree to conduct market development in energy and metal contracts.

"The exchange will soon launch futures trading in more metal like sponge iron, HR coils, aluminium, zinc and nickel. We are also planning to launch futures trading in perishable commodities mainly onion and potatoes in next two months," Mr Narendra Gupta, Chief Business Officer, NCDEX, said.