CME Group and CFETS Sign Memorandum of Understanding

Aug 05, 2015, 08:53 ET from CME Group

CHICAGO and SHANGHAI, Aug. 5, 2015 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, and China Foreign Exchange Trade System (CFETS), announced they have signed a Memorandum of Understanding (MOU) in Shanghai today.

This MOU was signed with a view to establish a joint venture in the United States to implement the outcome from the 7th US and China Strategic Economic Dialogue, where both the United States and China have welcomed CME Group and CFETS working closely together in exploring opportunities and promoting each other's market infrastructure and products through cooperation programs, and facilitating the development of both countries' markets.

"We are pleased to be able to play an active role in promoting trade and cooperation between the United States and China," said Terry Duffy, Executive Chairman and President of CME Group.  "As China continues on its path of financial market liberalization and RMB internationalization, we believe that there are unique opportunities for CME Group and CFETS to work closely together to create a marketplace that best serves needs of the derivatives industry."

"China is key to our global growth strategy, and this MOU with CFETS marks another key development in our China roadmap," said Phupinder Gill, Chief Executive Officer of CME Group. "We believe this MOU will pave the way for greater collaboration between CME Group and CFETS, and bring about enhanced trading opportunities and benefits for our global customer base trading foreign exchange and interest rates products."

CFETS is China's largest marketplace for interest rates and foreign exchange products, and also the major trading platform and pricing center for RMB and related products, while CME Group is the world's leading and most diverse derivatives marketplace.  Pei Chuanzhi, President of CFETS said, "Our cooperation will bring mutual benefits to both organizations, facilitate the connectivity and opening-up of financial markets of China and the United States, as well as meet the demand of Sino-US economic entities to hedge their interest rates and foreign exchange risks. At the same time, our collaboration will enable financial markets to drive economic growth, enhance the welfare of the people of both countries, and further promote international collaboration."

About CME Group

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, its trading facilities in New York and Chicago, and through its London-based CME Europe derivatives exchange.  CME Group also operates one of the world's leading central counterparty clearing providers through CME Clearing and CME Clearing Europe, which offer clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions.  These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk.

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.  KCBOT, KCBT and Kansas City Board of Trade are trademarks of The Board of Trade of Kansas City, Missouri, 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.

About CFETS

China Foreign Exchange Trade System and National Interbank Funding Center, also known as CFETS (http://www.chinamoney.com.cn), is a sub-institution of the People's Bank of China. It was founded in 1994. Under the state's strategic guidance to develop the interbank markets, and following the leadership of the People's Bank of China and the State Administration of Foreign Exchange, CFETS sticks to the principles of 'multiple technical approaches, various trading mechanisms and satisfying demands from multi-tiered markets', and commits to infrastructure construction, product and mechanism innovation on China's interbank markets, aiming to build itself as a global 'major trading platform and pricing center for RMB and related products'. By availing advanced information technology, dedicated line and the internet, CFETS has built a domestic 'major trading platform and pricing center for RMB and related products'. On every business day, it publishes market benchmarks including the central parity rate of RMB, Shanghai Interbank Offered Rate (Shibor <http://www.shibor.org>), Loan Prime Rate (LPR), Repo fixing rates, bond indices, yield curves etc. Its customers include 2,600+ legal entities, 8,100+ trading accounts, 33,000+ information and surveillance service users. In 2014, the total trading volume was over 360 trillion RMB.

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SOURCE CME Group



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