The BSE has entered into a licensing agreement with the London Metal Exchange to source its base metal prices for settlement of futures contracts.
The BSE launched trading in commodity derivatives such as gold and silver from October 1. The partnership will strengthen the BSE and LME global collaboration and support opportunities that will mutually benefit the exchanges.
The agreement is designed to facilitate closer cooperation in areas such as product development, training and the sharing of market resources.
The majority of non-ferrous metal futures business is transacted on the London Metal Exchange’s platforms.
Ashishkumar Chauhan, Managing Director, BSE, said the agreement would enable a better understanding of the market dynamics of the base metals industry in India. It will integrate the Indian and global markets more effectively and foster world-class best practices in the commodity derivatives market, he said.
“The agreement will enable us to work together towards our mutual interests, enhance business opportunities, extend global reach and will gradually result in benefits for our customer base and also help in bringing exciting products to the Indian marketplace,” he said.