India's commodity futures exchange MCX-SX has selected global index provider FTSE Group as its preferred index provider. MCX-SX and FTSE have signed a cooperation agreement to collaborate on a new and broader range of domestic and international indices in the Indian market.
MCX-SX is a subsidiary of Multi Commodity Exchange of India and operates under the regulatory framework of Securities and Exchange Board of India (Sebi) and Reserve Bank of India (RBI). It was launched in October 2008.
The agreement marks FTSE's full entry into the India market. In July 2007, FTSE and Indian infrastructure specialist Infrastructure Development Finance Company Limited (IDFC) launched the FTSE IDFC India Infrastructure Index Series.
According to FTSE, a key driver in its ongoing growth is the increasing number of stock exchanges that have selected it to become their preferred index provider. FTSE is so far an index partner of more than 20 stock exchanges globally, on whose behalf it calculates a range of domestic and international indices across a number of asset classes.
FTSE could not provide more information about the indices that it will likely launch with MCX-SX because a lot of work with regard to their creation has yet to be done. At the earliest, the indices could be available towards the end of this year but more likely in 2010.
Index providers such as FTSE look at India as a potentially strong revenue centre, given that it is the next fastest growing economy and market next to China.