India’s premier exchange, the Bombay Stock Exchange (BSE), announced on Friday that it has inked a memorandum of understanding (MoU) with the Dubai Mercantile Exchange (DME). Together, the two exchanges will work together to help India’s commodities market maximize its potential.
DME is the premier commodities and international energy futures exchange in the Middle East. At the beginning of this month, BSE launched its derivatives trading platform. Through the agreement, the exchanges will support the development of this platform to create a resourceful commodities derivatives market in India.
Commenting on the partnership, Shri Ashishkumar Chauhan, MD & CEO, BSE, said: “at BSE, we have always focused on identifying and creating new business opportunities that will contribute to the development of the nation.”
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“We believe that it is important to build mutually beneficial relationships in the journey of shared goals. With the fundamental objective of evolving the commodity derivatives market, we are pleased to associate with DME in this endeavour that will immensely help all stakeholders.”
A Shared Interest in India’s Commodities Market
DME was launched in June 2007, and its flagship contract is the Oman Crude Oil Futures Contract (DME Oman). This contract is the sole benchmark for Oman and Dubai crude oil. BSE, on the other hand, was Asia’s first stock exchange. It claims to be the fastest in the world, with a median trade speed of six microseconds.
Speaking on the MoU, Raid Al-Salami, Head of DME, added: “as the world’s fastest growing major economy, India offers seamless opportunities across industries, particularly in the energy sector. With its growing needs for energy imports, the country has become a key focus market for global industry players, and our collaboration with BSE will enable us to tap into the country’s thriving energy market.”
“We will leverage our expertise in facilitating energy futures and commodities trading to enable BSE to further promote its new trading platform for commodities derivates and better serve the needs and interests of the domestic derivatives market.”