MCX signed with CME group for international exchange at GIFT City [ Current Affairs ]
About Multi Commodity Exchange: Multi Commodity Exchange of India Ltd called as MCX is an independent product exchange company founded in India. The turnover of the exchange for the economic year 2009 was US 1.24 trillion dollars. In terms of contracts operated, it was the world’s sixth largest product exchange in 2009.
About CME group:
- CME Group known as Chicago Mercantile Exchange is an American stocks company and one of the largest choices and commodities exchanges. It maintains and controls large products and commodities exchanges in Chicago and New York City and also online trading platforms.
- Recently, MCX has signed a MoU (Memorandum of Understanding) with the US based CME group to set its operations in GIFT City ( Gujarat International Finance Tec-City ) in Gujarat.
About GIFT City:
- GIFT is an under-construction central business district in Gujarat.
- It will cover 3.59 square kilometers (886 acres) land.
- Its main purpose is to provide high quality physical infrastructure like electricity, water, gas, district cooling, roads, telecoms and broadband, so that finance and technology firms can transfer their operations there from Mumbai, Bangalore, Gurgaon etc.
- CME and MCX will initially conduct a joint viability study of setting up operations in an International Finance Service Center (IFSC) in India.
Other exchange platforms announced their plans for operations in GIFT:
- National stock Exchange (NS),
- Bombay stock Exchange (BSE)
- Commodity exchange NCDEX
MCX assumes by this partnership that it will bring best practices in the marketplace and expanded product schedule to the stakeholders of Indian commodities markets.
CME’s capability of large amount of exchange will help MCX for identifying and providing suitable products to stakeholders and more specifically to small and medium enterprises that at the moment cannot participate in international exchanges.
- Published on: July 29, 2015