MCX collaborates with Chittagong Stock Exchange Limited to establish Bangladesh's first Commodity Exchange

Multi Commodity Exchange of India (MCX), India's largest commodity derivatives exchange, and Chittagong Stock Exchange Limited (CSE), Bangladesh, signed a consultancy agreement today to collaborate for establishment of the country's first commodity derivatives platform in Bangladesh. Under this consultancy agreement, MCX shall assist and provide consultancy services in the areas of products, clearing and settlement, trading, warehousing, regulatory aspects, etc. The agreement signing-in ceremony was graced by dignitaries at Dhaka and Mumbai.

Bangladesh's economy has been growing rapidly in recent years, supported by an enabling policy environment and several supportive structural changes. A commodity-intensive economy like Bangladesh and its value chain participants including domestic corporates, producers and consumers, can gain immensely from economic benefits of efficient price risk management mechanism available for various traded commodities which the country produces and consumes.

This occasion is an important milestone in the creation of market infrastructure institutions for development of Commodity markets in Bangladesh, as the country celebrates its 50th anniversary of independence.

CSE's Honorable Chairman Mr. Asif Ibrahim said on this historical event that, "To facilitate the economy more vibrant and well connected, we have started working positively towards the establishment of a commodity exchange and have signed agreement with Multi Commodity Exchange of India Limited (MCX) today. This is historical event and will be a milestone in the history of Bangladesh's development."

Speaking on the occasion, Mr. Md. Ghulam Faruque, MD, CSE said, "Today is a historic day as we have taken the first step towards creation of Bangladesh's first Commodity derivatives platform. The country has a rich, old and vibrant trading culture in several commodities and with the assistance of MCX, we are confident that we will soon establish a robust platform for price discovery and risk management for commodities in the country."

Commenting on the agreement, Mr. P.S. Reddy, MD & CEO, MCX, stated, "This event is of great significance given the close bilateral relations between the two countries, and forges a strong relationship between the two exchanges. We are glad to be part of this journey that is paving way for establishment of the country's first commodity derivatives platform in Bangladesh. This platform has great potential to bring immense benefits to the commodities market and its stakeholders in Bangladesh. We wish the team at CSE a great success in this endeavor."

Shares of Multi Commodity Exchange of India Limited was last trading in BSE at Rs. 1413.05 as compared to the previous close of Rs. 1441.50. The total number of shares traded during the day was 20263 in over 2506 trades.

The stock hit an intraday high of Rs. 1445.00 and intraday low of 1404.10. The net turnover during the day was Rs. 28705632.00.

Source : Equity Bulls

Keywords

MultiCommodityExchangeofIndia INE745G01035 MCX Collaboration ChittagongStockExchange Bangladesh CommodityDerivativesPlatform