Such tie-ups could resemble the CME’s current arrangement with the New York Mercantile Exchange (Nymex), which makes Nymex energy futures contracts available over the CME’s electronic platform, Globex.
Davidson made the comments at a presentation held with the Associated Chambers of Commerce and Industry of India (Assocham). He claimed the value of daily trading on Indian commodities exchanges – a figure he said was over $800 billion – justified seeking greater co-operation. But he said the Indian government would have to relax restrictions on foreign involvement in the economy before the CME made any move.
Assocham also made a call for more lax regulation, including rupee convertibility on capital account. A Reserve Bank of India taskforce is currently reviewing the issue, after an earlier report recommended ‘untying knots’ in the country’s foreign exchange management systems.
India legalised commodity futures trading in 2002, and the three exchanges began futures trading the following year.