India’s leading and Asia’s oldest stock exchange, Bombay Stock Exchange (BSE) and Dubai Mercantile Exchange (DME) has inked a memorandum of understanding (MOU) to work together to help India’s commodity market to maximize its potential.
The announcement of the partnership comes at a time when BSE has recently launched its commodities trading platform on October 1st. DME is one of the premier commodities exchange in the world and international energy futures exchange in the Middle East. The partnership agreement includes supporting the development of the platform to create resourceful commodities derivative market in India. It will also allow Indian corporate to hedge their exposure using BSE’s commodity derivatives segment.
Shri Ashishkumar Chauhan, MD & CEO, BSE, commented on the partnership:
“We believe that it is important to build mutually beneficial relationships in the journey of shared goals. With the fundamental objective of evolving commodity derivatives market, we are pleased to associate with DME in this endeavor that will immensely help all stakeholders.”Further added: “at BSE, we have always focused on identifying and creating new business opportunities that will contribute to the development of the nation.”
DME is launched in June 2007 and its flagship contract Oman Crude Oil Futures Contract is the sole benchmark for Oman and Dubai crude oil. 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 derivatives and better serve the needs and interests of the domestic derivatives market.”