The Hindu Business Line : MCX signs MoU with China's ZCE

Multi Commodity Exchange of India Ltd (MCX) has entered into an MoU with Zhengzhou Commodity Exchange (ZCE) to explore areas of mutual co-operation that benefit both the exchanges.

MCX offers forward contracts in agriculture, metals and energy commodities, whereas ZCE China offers commodity futures contracts in wheat, cotton and white sugar.

According to a release issued by MCX on Monday, both the exchanges will work together to develop areas of common business opportunities by maximising the application of international best practices for price risk management and exchange operations.

MCX Deputy Managing Director, Mr Joseph Massey, told Business Line that in the first phase both the exchanges would share their leaning experiences followed by cross-listing of products.

He, however, did not predict any timeframe for cross listing. Unlike in India, where exchanges are highly diversified, in China four major exchanges trade on four different baskets of commodities.

"ZCE, which is one of the leading agri-commodity exchanges in China. This MoU will offer us the opportunity to understand how they had integrated both the futures and spot market," Mr Massey said.

The release quoted Mr Zhao Zhengping, President and Chief Executive Officer of the ZCE saying: "Both ZCE and MCX are leading futures exchanges in China and India and have listed similar products in agricultural arena. We believe that this MoU will reinforce our relationship, enhance communication and provide support for the innovations and development of both markets."

More Stories on : Alliances & Joint Ventures | Commodity Exchanges

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page