Mumbai: 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.”