Bali/Jakarta/London/Leipzig/Frankfurt, 24 February 2014 – Indonesia Commodity and Derivatives Exchange (“ICDX”), also known as PT. Bursa Komoditi dan Derivatif Indonesia (BKDI) has signed a Memorandum of Understanding (“MoU”)with Deutsche Börse backed Global Markets Exchange Group International LLP (“GMEX Group”).
ICDX has also signed a Memorandum of Understanding with the European Commodity Clearing AG (“ECC”). ECC is the central clearing house for energy and related products in Europe. It is majority-owned by European Energy Exchange AG (“EEX”) which is part of Group Deutsche Börse.
The signing ceremony was attended by senior officials from ICDX, GMEX Group and Deutsche Börse in the presence of Mr. Muhammad Lutfi, Minister of Trade for Indonesia and Sutriono Edi, Head of Indonesia Commodity Futures Trading Regulatory Agency (COFTRA).
Indonesia is the world’s largest producer for many commodity products and the demand for Indonesia to be the benchmark for these is high. ICDX offers a wide range of mostly commodity products: Metals, including gold and tin, soft agricultural products, including crude palm oil futures, and foreign currency contracts.
In the framework of the MoU GMEX Group subsidiary GMEX Technologies Limited (“GMEX TECH”) and ICDX will explore the opportunities for ICDX to utilise the GMEX TECH leading edge ForumMatch exchange trading platform and ForumDetect market surveillance system. The two parties will also explore opportunities for cross linkage between GMEX in London and ICDX in Jakarta.
Furthermore, ECC and ICDX will jointly carry out a study investigating clearing services for the markets operated by ICDX. Together, they will examine the opportunities of using ECC’s clearing services and distribution for physically settled products in cooperation with ICDX’s clearing house, Identrust Security International (“ISI”) Clearing. They will also look at cross-market netting solutions in margining and risk functions and clearing member connectivity needed for the target market participants of ICDX.
“Having a strategic alliance with GMEX, ECC, and Deutsche Börse will be important for our growth strategy. We are very excited with the collaboration potential and we are confident that it will further strengthen our position as one of the leading commodity centres in the world ,” said Megain Widjaja, Chief Executive Officer at ICDX.
“This is a unique partnership with ICDX which, in conjunction with ECC, will facilitate optimised distribution and access for the international financial community. It can provide Indonesia with the infrastructure and partnerships to support its position at the heart of global commodity market innovation and paves the way for it to be the benchmark provider of pricing for its strong natural resources in the likes of tin, palm oil and rubber.” said Hirander Misra, Chief Executive Officer and Co-Founder of GMEX Group.
“ECC’s experience in physically settled commodity transactions together with our partner exchange approach and distribution network will contribute to the development of the Indonesian commodity markets. We are glad to share our expertise with our partner ICDX.” said Dr. Thomas Siegl, Chief Risk Officer of ECC.
Roland Schwinn, Executive Director and Head of Business Development Asia and Middle East of Eurex, who joined the signing ceremony on behalf of Group Deutsche Börse added: “We see ICDX as being an important and growing market place in the commodity space and as a competent and well positioned partner for the further development of our business in Asia.”
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About Indonesia Commodity and Derivatives Exchange
Indonesia Commodity and Derivatives Exchange (ICDX), also known as PT. Bursa Komoditi dan Derivatif Indonesia (BKDI) is the internationally known commodity and derivatives exchange based in Indonesia.
Its vision is to be a global marketplace that advances national prosperity. Its mission is to become the world’s pricing benchmark for commodities through Indonesian primary products.
ICDX is an Exchange supported by its members who are brokers and traders approved by BAPPEBTI. The member of ICDX facilitates services clients’ transactions covering ICDX products. Trading in ICDX will be settled, guarantee and cleared by Identrust Security International (ISI). ICDX membership consists of traders, brokerage firms, and foreign traders (remote members). All members have an option as the Exchange clearing members.
For more information, visit www.icdx.co.id
About GMEX Group
Global Markets Exchange Group International LLP is a group of companies that offer ethical, sustainable and innovative solutions for the new age of global financial markets, encompassing:
- Operation of a Multilateral Trading Facility for the trading of a Constant Maturity Future for Interest Rate Swaps, subject to FCA approval
- Development of related new tradable market and product indices
- Creation and operation of low cost electronic exchanges in equities, debt, FX, derivatives and commodities in developing and, in a targeted way, developed markets
- Interconnectivity of exchanges to each other creating a global network of liquidity
- Business development to enhance liquidity in partner exchange products
- Consultancy on exchange strategy, product development, clearing and regulation
- Provision of platform technology
GMEX Group stakeholders include Deutsche Börse AG and Forum Trading Solutions Limited through its investment vehicle.
For more information, visit www.gmex-group.com
European Commodity Clearing (ECC) is the central clearing house for energy and related products in Europe.
In its capacity as the central counterparty ECC assumes clearing as well as physical and financial settlement of transactions concluded on CEGH Gas Exchange of the Vienna Stock Exchange, EEX, EPEX SPOT, HUPX, Powernext and PXE or trades registered on these exchanges. Furthermore, ECC will start clearing services for the Norwegian NOREXECO soon. ECC is constantly evolving new markets and co-operations.
The clearing house was established in 2006 as a wholly owned subsidiary of the European Energy Exchange (EEX). EEX is a member of Deutsche Börse Group.
For more information, visit www.ecc.de/en/