24/8/06 Mumbai, (The New Karala)  -  The Multi Commodity Exchange of India Ltd (MCX) has entered into an exclusive and non-transferrable licensing agreement with Bursa Malaysia Berhad to use Bursa Malaysia's derivatives palm oil price in India.

Bursa Malaysia Berhad operates the world's largest derivative exchange dealing in palm oil contracts. This initiative is a result of a Memorandum of Understanding (MoU) signed between the two exchanges on March 30, a release issued here today stated.

Through the licensing agreement, Bursa Malaysia will permit MCX to use the former's derivatives palm oil price as the basis for settling MCX's palm oil derivatives contracts and as the reference in connection with the creation, marketing, trading, clearing and settlement of such contracts on MCX.

Terming the agreement as an expansion of Bursa Malaysia's regional alliances, Yusli Mohamed Yusoff, Chief Executive Officer, Bursa Malaysia Berhad said it will solidify the exchange's position as the benchmark of global derivatives palm oil pricing.

"The agreement with Bursa Malaysia Berhad will provide a benchmark price reference for risk management to the palm oil sector of India, allowing Indian palm oil producers, users and investors access to globally aligned prices and trading practices within their home country, in local currency, local time and with safeguard of counterparty risk," said Jignesh Shah, Managing Director and CEO, MCX.