MCX signs MoU with Glass Manufacturers' Federation

The aim of the MoU signed by the Multi Commodity Exchange of India (MCX) and The All India Glass Manufacturers’ Federation (AIGMF) is to provide fundamental and technical training to market participants, develop and provide services and facilities for the overall improvement of the commodity futures market and market practices.

The Multi Commodity Exchange of India (MCX) has signed an agreement with The All India Glass Manufacturers’ Federation (AIGMF) for market development in the energy futures segment.
“We are delighted to be associated with AIGMF. By virtue of this MoU, market participants would be imparted knowledge about derivatives market through series of staff training and commodity awareness programmes, which will engender confidence in them to hedge their price exposures,” MCX Managing Director and CEO Lamon Rutten said.
The aim of the MoU is to provide fundamental and technical training to market participants, develop and provide services and facilities for the overall improvement of the commodity futures market and market practices, particularly in the energy segment. Crude oil by-products are used as an energy source in glass melting furnaces, and, therefore, crude oil price volatility impacts the bottom line of glass manufacturers.
MCX will, according to the MoU, educate market participants and enable glass manufacturers to take advantage of the commodity futures market to hedge their crude oil price exposures. Globally, MCX, which offers futures contracts in crude oil, which closely tracks WTI crude, is the third largest exchange in crude oil with respect to the number of futures contract traded.