BSE signs pact with Dubai Mercantile Exchange for commodity derivatives mkt

Leading bourse BSE Thursday said it has signed a pact with Dubai Mercantile Exchange (DME), international energy futures and commodities exchange in the middle-east, to explore ways in maximising the potential of the commodities market in India. The partnership comes on the heels of BSE’s launch of its commodities derivatives trading platform on October 1. In a statement, BSE said that 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. This synergy will help Indian corporates to hedge their exposure on BSE’s commodities derivatives segment.

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, Ashishkumar Chauhan said. 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 derivatives and better serve the needs and interests of the domestic derivatives market, he added. Launched in June 2007, DME lists Oman Crude Oil Futures Contract (DME Oman) as its flagship contract, providing the fair and transparent crude oil benchmark for the region. DME Oman is the sole benchmark for Oman and Dubai crude oil.

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