Exchanges in Japan and China Sign MoU for Derivatives Market Cooperation

Japan Exchange Group, Inc. (JPX) and China Financial Futures Exchange Co. Ltd. (CFFEX) announced on Wednesday the signing of a memorandum of understanding for enhancing the cooperation between derivatives markets in the two countries.

“We hope that this agreement will contribute to making derivative products listed on both exchanges more convenient for market participants in both countries, such as by improving the liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term of ETFs listed under the Japan-China ETF Connectivity scheme,” said Kiyota Akira, the CEO of JPX Group.

It will allow the two exchanges to “actively collaborate on initiatives and promotional activities” for encouraging Japanese and Chinese investors to invest in derivatives products listed on the two markets.

Akira added: “In cooperation with CFFEX, we will work toward developing both derivative markets, contributing to further developments in the capital markets of both countries.”

Enhancing Cross-Border Trading

Additionally, JPX signed another MoU on 25 January 2021 with Shenzhen Stock Exchange (SZSE) for the establishment of Japan-China ETF Connectivity*1. Now, these two exchanges have started promoting ETFs to investors in the Japanese and Chinese securities markets.

On top of that, the exchanges have started to provide information on the opposite market.

“Following the establishment of Japan-China ETF Connectivity Connectivity Connectivity is defined as a term used for connecting devices to each other. In most cases, this refers to computer networking and more specifically includes bridges, routers, switches, gateways, and service as well as local networks. Connectivity can refer to simple forms, such as connecting a home or office to the internet or even connecting a digital camera to a computer or printer. Connectivity in FinanceConnectivity has taken on new meaning with the growth of fintech and Big Data collectio Connectivity is defined as a term used for connecting devices to each other. In most cases, this refers to computer networking and more specifically includes bridges, routers, switches, gateways, and service as well as local networks. Connectivity can refer to simple forms, such as connecting a home or office to the internet or even connecting a digital camera to a computer or printer. Connectivity in FinanceConnectivity has taken on new meaning with the growth of fintech and Big Data collectio Read this Term in 2021, we are very pleased to cooperate with SZSE in the promotion of ETFs using this scheme and in promotional activities for investors in the Japanese and Chinese securities markets,” Akira said.

“We look forward to further deepening our cooperative relationship with SZSE and contributing to the further development of the capital markets in both countries.”