MCX rallies on MoU with Zhengzhou Commodity Exchange

The country’s largest exchange in commodity derivatives market Multi Commodity Exchange of India Ltd. (MCX) has signed Memorandum of Understanding (MoU) with one of the leading commodity exchanges in China Zhengzhou Commodity Exchange (ZCE) for cooperation and the exchange of information.

The MoU is expected to enhance cooperation between the two exchanges in areas such as knowledge sharing, education & training, organizing events as well as to explore areas of mutual interests between the exchanges.

Mr. P.S. Reddy, Managing Director & CEO of MCX, said "We are delighted to renew our association with Zhengzhou Commodity Exchange. The long standing mutually beneficial partnership between MCX and ZCE has enabled us to understand each other's market better. As China and India are among the world's top commodity consuming and producing nations, I am confident that this continued alliance between the two institutions provides for a continuous exchange of knowledge, expertise and best practices. Moreover, such cooperation is crucial for an overall growth and development of commodity markets in the region, given the evolving and dynamic nature of global markets."

Mr. Jun Xiong, President of Zhengzhou Commodity Exchange said "The signing of this MOU will further promote exchanges and cooperation between the two sides, especially in information sharing, high-level visits, training and education, joint activities. And it will also contribute to the development and prosperity of Asian commodity market."

MCX offers commodity futures contracts in bullion, base metal, energy and agricultural commodities, whereas commodity futures with both Agricultural and non-agricultural products like Cotton, Rapeseed Oil, Seed & Meal, Sugar, Flat Glass, Methanol, Pure Teraphthelic Acid (PTA) and Thermal Coal as underlyings are traded on ZCE. Besides, ZCE offers option products on White Sugar and Cotton. At the same time, options on Gold, Silver, Crude Oil, Copper and Zinc futures are traded on MCX.

After plummeting nearly 10 per cent on Tuesday as SEBI sought clarification from the exchange on a whistleblower allegation of trouble in settlement of its recent gold and cotton contracts, the stock has shown some green shoots on Thursday.

Shares of Multi Commodity Exchange of India had opened at Rs. 870.00 as compared to the previous close of Rs. 868.70. The stock hit an intraday high of Rs. 894.00 and intraday low of Rs. 835.10. The stock closed at Rs. 870.90, up 0.25 per cent on BSE.