MCX and Europe's EEX sign MoU to share knowledge and expertise on electricity derivative products

KOLKATA: Multi Commodity Exchange of India (MCX), a leading exchange in the commodity derivatives segment, and European Energy Exchange AG (EEX) have entered into a Memorandum of Understanding (MoU), with the objective of knowledge sharing and exchanging of expertise on electricity derivative products.

This MoU will facilitate cooperation between the two exchanges in areas such as knowledge sharing, education & training and organizing events in the domain of electricity derivatives.

EEX is a leading energy exchange in Europe, which develops, operates and connects secure, liquid and transparent markets for power and other energy products.

Announcing the MoU, Mr. P.S. Reddy, managing director & CEO of MCX, said "This is a mutually beneficial MOU between MCX and EEX that will enable us to understand each other's market better. I am confident that this alliance between the two institutions provides for a continuous exchange of knowledge, expertise and best practices. Moreover, such cooperation is important for an overall growth and development of the commodity markets, given the evolving and dynamic nature of global markets."

In the financial year 2020-21, the market share of MCX stood at 96.04 per cent in the commodity futures segment. MCX offers the benefits of fair price discovery and price risk management to the Indian commodity market ecosystem. Various commodities across segments are traded on the exchange platform. These include bullion, energy, metals and agri-commodities. The exchange has forged strategic alliances with various international exchanges, as well as Indian and international trade associations.