Chicago-based CME Group Inc (NASDAQ:CME) issued a company announcement that it has signed a deal with the China Financial Futures Exchange Inc (CFFEX) for market data provision. The agreement will provide customers of CME’s data distribution platform access to the latest data from the only financial derivatives exchange in mainland China.
The move comes as no surprise as the companies have shown cooperation efforts in the past, however it is the first such agreement for a US company. The CFFEX signed memorandums of understanding with the CME Group Inc. (NASDAQ:CME), Deutsche Börse AG (DB1.XE), the InterContinental Exchange (the agreement was with NYSE Euronext), the CBOE Holdings Inc (NASDAQ:CBOE) and the Singapore Exchange (SGX) toward sharing data and developing new derivatives markets.
Those agreements granted the exchanges the possibility of engaging in information sharing, cross-training of employees and joint research projects for developing new derivatives markets.
According to the company’s CEO Phupinder Gill, the CME Group will “act as the global market data distributor for CFFEX outside of mainland China. Through this relationship, CME Group establishes itself as a critical component for global customers that want access to Chinese markets.”
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“CFFEX is an important partner for us and we are privileged to play a key role in the internalization of their benchmark products, as China continues on its path of financial market liberalization,” he added.
The CEO of China Financial Futures Exchange, Hu Zheng, said, “Global development is one of our main goals and an important driver of market growth. This is why it is essential for us to work closely with global partners such as CME Group and why we attach such significance to signing this agreement. We believe it is a milestone for both parties.”
The CME Group Inc (NASDAQ:CME) has recently announced the approval of its Canadian trade repository, and the company’s Global Head of Trade Repository Services, Jonathan Thursby, provided the firm’s perspective on the new regulatory requirements for OTC derivatives transaction reporting.