This may be related to previous announcements that China’s financial futures exchange is looking to expand derivatives trading to meet objectives of Shanghai becoming a commercial hub by 2020. The Chinese Yuan has trade limitations and new FX futures will pave the way for better trading and risk management for corporates and institutions.
In recent years Shanghai has shown improvements in its conduct with the Yuan. Honk Kong has been mastering itself as the home for offshore Yuan trading and now takes the bulk of daily trade volumes.
CHICAGO, March 1, 2012 CME Group, the world’s leading and most diverse derivatives marketplace, and Bank of China, the most internationalized and diversified bank in China, today announced they have signed a Memorandum of Understanding to explore and potentially collaborate in a long-term business relationship that will harness the strengths of both organizations to provide mutual benefits as both parties grow their global businesses.
The non-binding agreement provides for the establishment of information-sharing links which cover education, training and marketing; in addition, the companies will focus on future business opportunities facilitating cross-border trading in commodities futures and options, subject to the applicable regulations.
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BOCI Commodities & Futures Limited (“BOCI C&F”), a wholly-owned subsidiary of Bank of China, is a clearing member of each of CME, CBOT, NYMEX and COMEX. BOCI C&F currently facilitates access to CME Group’s exchange-listed futures and options products for permitted entities, and has taken a role in customer acquisition and service provision for investors permitted to trade in CME Group products. The two parties will look to further strengthen the role of BOCI C&F as a clearing member. CME Group will assist BOCI C&F with investor education, business development, and employee training to further augment the business offerings of BOCI Global Commodities.
“With the increasing openness and sophistication of China’s futures markets, CME Group believes in the value of cooperating with leading institutions like Bank of China and its subsidiaries as they provide education on CME Group products and services to their expanding customer base,” said Phupinder Gill, CME Group President. “This agreement will lay the foundation for what we hope will be a long and successful relationship between our companies.”
As the world’s leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the world’s leading central counterparty clearing providers, which offers clearing and settlement services for exchange-traded contracts, as well as for over-the-counter derivatives transactions through CME ClearPort®. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk in both listed and over-the-counter derivatives markets.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are registered trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other trademarks are the property of their respective owners. Further information about CME Group (NASDAQ: CME) and its products can be found at www.cmegroup.com.