NSE, Bharat Metal Exchange join hands to develop non-ferrous metal derivatives market

The National Stock Exchange of India Ltd (NSE) on Monday (June 22) said it has signed a Memorandum of Understanding (MoU) with Bharat Metal Exchange Ltd (BME), formerly known as Bombay Metal Exchange Ltd, to promote the development, awareness and adoption of non-ferrous metal derivatives in India.

The collaboration brings together NSE’s derivatives market infrastructure and BME’s expertise and engagement with India’s physical non-ferrous metals ecosystem. Bharat Metal Exchange has a legacy of more than nine decades and maintains a global network across the non-ferrous metals trade and industry ecosystem.

Under the partnership, the two organisations will work to strengthen market participation, enhance price risk management practices and support the development of hedging tools for stakeholders across the non-ferrous metals value chain. The initiative is aimed at advancing the non-ferrous metal derivatives market ecosystem in India through joint efforts by the two exchanges.

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Through this collaboration, NSE and BME will work together to develop new products in the non-ferrous metals space and promote awareness focused on price risk management using tools such as exchange-traded non-ferrous metal derivatives.

Sriram Krishnan, Chief Business Development Officer (CBDO), NSE, said, "India’s growing industrial economy requires efficient and transparent risk management tools to support businesses exposed to commodity price fluctuations.

Through our collaboration with BME, we aim to deepen awareness and participation in non-ferrous metal derivatives, enabling market participants to manage price risks more effectively and contribute to the development of a vibrant commodity derivatives ecosystem in India."

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The collaboration will facilitate engagement with producers, consumers, processors, traders, importers, exporters, industry associations, and financial market participants to encourage broader adoption of exchange-based risk management solutions.

Sushil R. Kothari, President, BME, said, "We are delighted to partner with NSE through this important initiative aimed at strengthening India’s non-ferrous metals ecosystem. This collaboration will help bridge the gap between the physical and derivatives markets by creating greater awareness about risk management tools and encouraging wider participation from producers, consumers, traders and processors.

We believe that the combined strengths of BME’s trade & industry expertise and NSE’s robust market infrastructure will contribute significantly to the growth and adoption of non-ferrous metal derivatives in India."

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