BSE signs MoU with Dubai Mercantile Exchange to explore cooperation on commodity derivatives market
Mumbai, October 11, 2018: BSE, India’s premier exchange and the world’s fastest Stock Exchange with a speed of 6 microseconds, has signed a memorandum of understanding (MoU) with Dubai Mercantile Exchange (DME), the premier international energy futures and commodities exchange in the Middle East, to explore ways in maximising the potential of the commodities market in India.
The strategic collaboration with the energy-focused commodities exchange will help create a resourceful commodities derivatives market to facilitate tremendous growth in the country’s energy sector. The partnership comes on the heels of BSE’s launch of its commodities derivatives trading platform on October 1. This would harmonise BSE’s enterprises to deepen the commodity markets amongst stakeholders.
Launched in June 2007, DME lists Oman Crude Oil Futures Contract (DME Oman) as its flagship contract, providing the most fair and transparent crude oil benchmark for the region. DME Oman is the explicit and sole benchmark for Oman and Dubai crude oil. This synergy will help Indian corporates to hedge their exposure on BSE’s commodities derivatives segment.
On this occasion, 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. 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.”
Commenting on the signing of the MoU, Raid Al-Salami, Head of DME, said: “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.”
DME is the premier international energy futures and commodities exchange in the Middle East. It aims to provide oil producers, traders and consumers engaged in the East of Suez markets with transparent pricing of crude oil.
Launched in 2007, DME has rapidly grown into a globally relevant exchange. Its flagship Oman Crude Oil Futures Contract (DME Oman) contract is now firmly established as the most credible crude oil benchmark relevant to the rapidly growing East of Suez market. Reflecting the economics of the Asian region like no other contract, and the largest physically delivered crude oil futures contract in the world, DME Oman is the world’s third crude oil benchmark and the sole benchmark for Oman and Dubai exported crude oil.
DME is a fully electronic exchange, with regulatory permissions allowing access from more than 20 jurisdictions, including the major financial centers of Asia, Europe and the United States. The Exchange is located within the Dubai International Financial Center (DIFC), a financial free zone designed to promote financial services within the UAE. The DME is regulated by the Dubai Financial Services Authority and all trades executed on the DME are cleared through and guaranteed by CME Clearing.
DME is a joint venture between Dubai Holding, Oman Investment Fund and CME Group. Global financial institutions and energy trading firms including Goldman Sachs, JPMorgan, Morgan Stanley, Shell, Vitol and Concord Energy also hold equity stakes in the DME. www.dubaimerc.com
BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualised entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.
BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE also has a dedicated MF distribution platform BSE StAR MF which is India Largest Mutual Funds Distribution Infrastructure. On October 1, 2018, BSE launched commodity derivatives trading in delivery-based futures contract in gold (1 kg) and silver (30 kg).
BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.
Indian Clearing Corporation Limited, a wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full novation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), associate company of BSE, is one of the two Depositories in India.
Yatin Padia / Rahul Vyas / Mihir Dani
022 2272 8516 / 2272 8472 / 7738012080
Yatin.email@example.com/Rahul.firstname.lastname@example.org / email@example.com