Singapore Commodity Exchange Limited (SICOM) and the National Commodity & Derivatives Exchange Limited (NCDEX) of India have signed a Heads of Terms agreement to co-operate and enhance the development of their commodity markets.
The Heads of Terms for the proposed SICOM-NCDEX co-operation will be signed at a ceremony in Singapore on 26 May 2009 at 10.30am, witnessed by Lim Hng Kiang, Minister for Trade and Industry, Singapore; Dr. K. N. Raghavan, First Secretary (Commerce), High Commission of India, Singapore; and J Y Pillay, Chairman of Singapore Exchange.
The proposed co-operation will enable designated products to be traded and cleared in both exchanges. In addition, NCDEX will make available its agricultural commodity index to SICOM to create derivative products. This would make SICOM the first exchange outside India to trade NCDEXs products and NCDEX the first exchange outside Singapore to trade SICOMs products.
The exchanges will designate new products to the co-operation in response to market demand and jointly market and promote these designated products. SICOM and NCDEX are confident that the co-operation will grow their respective markets as it provides participants convenient trading access to both exchanges.
We are delighted to be in partnership with NCDEX, the largest agricultural commodity exchange in India. We believe this will widen the product offering and market access for our respective market participants, says Jeremy Ang, chief executive officer, SICOM.
The co-operation with NCDEX is in line with our alliance strategy to work with like-minded partners. It also underscores SICOMs position as a trusted marketplace and gateway to Asia. This partnership reflects the longstanding and strong relationship between India and Singapore.
NCDEX is extremely pleased to work with SICOM. We are seeing the entire focus of attention of commodity trading shifting towards the Asian region where our two countries will be providing the platforms for trading to a wider cross-section of traders across the globe through this agreement, says R. Ramaseshan, managing director & chief executive officer, NCDEX.
Singapores world class infrastructure, highly reputed regulatory framework and the advantage of Asian trade timings will add depth to the market segment catered by this agreement. India is one of the fastest growing centres for all major agricultural commodities and global markets can now get a flavour of Asian and Indian commodities through Singapore, continues R. Ramaseshan.
We also see this agreement as part of the efforts to improve bilateral relationship between the two nations under the CECA (Comprehensive Economic Cooperation Agreement) agreement and showcase Indias strength in the field of agriculture.
L.D.