The ultimate goal of the alliance is to bring better understanding between the two exchanges in terms of market dynamics of the two nations, contract specifications, education and communication, marketing, market monitoring / surveillance methods, market operations, trading practices and regulations in commodity futures markets.
Based on the MOU, TOCOM and MCX will be engaged in the fields such as, exploring area of cooperation and business opportunities, establishing procedures for communication and information exchange between TOCOM and MCX, amongst others.
Commenting on the occasion Mr. HAMADA, the President of TOCOM said, "It is honor for TOCOM to have such well-prepared signing ceremony with Honorable Minister's presence. The honor is even greater to have this occasion in the very same week we celebrated 20th anniversary in Tokyo. Since creation in 1984, TOCOM has been growing rapidly and steadily at approximately 18% per annum, and recently such growth cannot be achieved without co-operations with global participants. As one of our missions is to contribute the global, and Asian - among other things -, marketplace, we are very much delighted to having this opportunity with strong interests in TOCOM from many people in India."
Mr. Jignesh Shah, Managing Director & CEO of MCX, enthusiastically commented on the occasions, "While we are delighted to be able to directly expand our knowledge base by associating with world's leading commodity exchanges. This happening is even more significant as it marks the first step taken by any of the national commodity futures exchanges to bring international recognition for our country's commodity markets. In the first year of its operations MCX consolidated and strengthened the Indian commodity futures markets. MCX trading platform is known & recognized for its aptitude for innovations and implementing best practices. Taking its accomplishments further and coinciding with the celebration of its first birthday, MCX has set out on a mission to globalise and position Indian commodity markets on world map. And this is the first step in the road for the same."
Considering India's rich resources in terms of agriculture or metals and its consumption capacity for precious metal, India's constituents of the industry is trying to take all the needed steps so that the much-needed presence of Indian commodities markets can be made felt on the world scenario. They hope this first instance of any collaboration being achieved between an Indian and an international commodity will be the one such important event that will start the momentum to achieve this objective as soon as possible. TOCOM also hopes that this alliance will strengthen its position as the provider of benchmark price to the world market, and expand the network of derivatives trading among the region.
