Mumbai: The Multi Commodity Exchange of India Ltd. (MCX) has recently signed an MoU with Singapore Diamond Investment Exchange (SDiX) for establishing areas of cooperation. “We have signed an MoU with SDiX, the world’s first and only commodity exchange trading in physically settled diamonds or establishing areas of cooperation, between the two exchanges.
The MoU was signed at a ceremony in Mumbai by Mrugank Paranjape, MD & CEO of MCX and Linus Koh, CEO of SDiX,” a company statement said here. The MoU is intended to facilitate cooperation between the two exchanges in areas such as knowledge sharing and research, standardisation of the product for Indian markets and enhancing transparency in pricing, as well as to explore areas for further collaboration between the exchanges.
India is the largest global hub for the cutting and polishing of diamonds, and has several thousand small medium and large enterprises that are involved in the business. Moreover, through this partnership, the exchanges have agreed to work towards the goal of assisting the stakeholders in India’s diamond industry by bringing international best practices in price risk management and price discovery through innovative spot and derivative market operations, it said.
The MoU will support the mutual interests of MCX and SDiX towards establishing price discovery, enhancing transparency in prices and help the value-chain with a risk management platform, in a commodity like diamond in which India has a significant global presence. the release said.
“Through this association, both the exchanges, as well as the market stakeholders they serve, will be able to capitalise on the synergies, leverage knowledge and expertise to support innovations and development in diamond trading,” MCX MD & CEO Mrugank Paranjape said.
Alain Vandenborre, Founder and Executive Chairman, SDiX said, “This partnership will help us to further understand India’s derivatives market which has grown rapidly in the recent years. Through this opportunity, we hope to achieve a win-win situation for the prosperous development of the markets that MCX and SDiX cater to India’s commodity derivatives market.