Leading bourse NSE and NSE IFSC, the international bourse at GIFT City in Gujarat, have entered into a licensing agreement with the London Metal Exchange (LME) to source its base metal prices for settlement of futures contracts.
This comes a day before NSE is set to launch trading in commodity derivatives.
The licensing agreement would permit NSE and NSE IFSC to use the LME prices for settling various commodity futures contracts subject to receiving regulatory approvals, the National Stock Exchange (NSE) said in a statement Thursday.
LME is the world centre for the trading of industrial metals -- the majority of all non-ferrous metal futures business is transacted on LME platforms.
"The licensing agreement with LME affirms NSE's commitment to deepen the Indian commodity markets by providing convenient and cost-efficient onshore hedging mechanism for domestic as well as global participants. We look forward to working together for identifying innovative and far reaching products suitable to the Indian commodity market space," NSE MD and CEO Vikram Limaye said.
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