News
Bursa Malaysia Derivatives Berhad and Multi Commodity Exchange of India Limited sign Licensing Agreement
BackAug 24, 2006
| General Announcement Reference No BM-060824-37385 |
| Company Name | : | BURSA MALAYSIA BERHAD |
| Stock Name | : | BURSA |
| Date Announced | : | 24/08/2006 |
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| Type | : | Announcement |
| Subject | : | Bursa Malaysia Derivatives Berhad and Multi Commodity Exchange of India Limited sign Licensing Agreement |
Contents :
Further to the announcements dated 30 March 2006 and 29 June 2006, Bursa Malaysia Berhad ("Bursa") is pleased to announce that its wholly-owned subsidiary, Bursa Malaysia Derivatives Berhad ("Bursa Derivatives") and Multi Commodity Exchange of India Limited ("MCX") has on 24 August 2006 signed a licensing agreement ("the Licensing Agreement") to grant to MCX a non-exclusive and non-transferable licence for the sole purpose of utilising the Bursa Malaysia Derivatives Palm Oil Price as the basis for settling its palm oil derivatives contracts and as the reference in connection with the creation, marketing, trading, clearing and settlement of such contracts on MCX.
In consideration of the grant of the licence to utilise the Bursa Malaysia Derivatives Palm Oil Price, MCX shall pay to Bursa Derivatives fees equivalent to USD$0.20 per round-turn for all crude palm oil trades executed on MCX, subject to a minimum annual fee of USD$50,000 in the event the monthly minimum amount of USD$4,167 is not satisfied by the USD$0.20 per round-turn fee. The Licensing Agreement is not expected to have material impact on the earnings of Bursa group.
The Licensing Agreement is for a period of 3 years commencing from the date of execution and may be renewed upon the terms and conditions to be mutually agreed upon between the parties, unless terminated by either party giving 3 months written notice to the other party prior to the expiry of the Licensing Agreement or renewed term of the Licensing Agreement.
This announcement is dated 24 August 2006.