The agreement was flagged off by Mr. Sharad Pawar, Honorable Union Minister of India Ministry of Agriculture, Consumer Affairs, Food & Public Distribution in New York with the traditional ringing of the bell. Mr. Richard Schaeffer, Chairman NYMEX and Mr Venkat Chary, Chairman MCX signed the agreement on behalf of their exchanges.
This agreement will cover WTI Light Sweet Crude Oil, Natural Gas, Heating Oil, Gasoline, RBOB Gasoline and Propane futures contracts of NYMEX. The final settlement of these mini-contracts will be done based on the settlement price of reference contracts on NYMEX adjusted for local duties and taxes and in local currency.
Both the leading exchanges had earlier entered into an exclusive Memorandum of Understanding (MoU) last October to explore areas of co-operation that would be mutually beneficial.
Mr Venkat Chary said that this development has helped Indian energy market to integrate more clearly with the global energy market, which will be beneficial to the country in the long run. We feel proud bringing this benefit to the Indian industry.
Mr Jignesh Shah, MD & CEO MCX stated, “With its pan-India presence, large member & client network spread around the country MCX will offer this mini- NYMEX energy contracts to every stakeholder in the industry, irrespective of size. It will also facilitate the price discovery of these products in the Indian time zone based on local fundamentals.”