Bombay Bullion Association and ICEX sign Memorandum of Understanding

The MMTC-Indiabulls promoted Indian Commodity Exchange Ltd (ICEX) recently announced its strategic tie-up with the Bombay Bullion Association (BBA). Through this association, the exchange seeks to provide membership to all the BBA members and encourage local jewellers, exporters, importers, traders to efficiently trade in the bullion market. It also endeavours to encourage wider participation by providing multiple delivery centres across the country by leveraging on MMTC’s and BBA’s pan-India network. BBA will be an important stake holder in the exchange’s efforts in strengthening the delivery infrastructure and in launching customised contracts suited to Indian markets.

After signing the agreement, Sanjay Chandel of ICEX said, “The Indian commodity market has huge potential to grow manifold, and the tie-up between ICEX and BBA is an important step forward to rope in genuine trade on the exchange.”

Mr. Ajit Mittal of ICEX added, “The tie-up will also benefit the end consumer in terms of gold and silver pricing, as the traders will save considerable money through lower delivery costs as well as lower ICEX membership costs. This MOU is a part of an overall strategy to attract the physical trade to a transparent futures market platform. Additionally, thanks to lower intermediation cost, a range of small traders and jewellery manufacturers will be able to access the transparent exchange platform and hedge their price risk., thus expanding and deepening the ,market.”

Leading bullion traders from across the nation, major commodity brokers, senior officials from regulatory bodies and prominent bankers were present at the event.