CBOT Signs Memorandum Of Understanding With Shanghai Futures

The Chicago Board of Trade (CBOT) announced today that the Exchange has signed a Memorandum of Understanding (MOU) with the Shanghai Futures Exchange (SHFE) to pursue cooperative programs and potential joint business projects.

CBOT President and CEO Bernard W. Dan said, "The CBOT is pleased to enter this strategic alliance with an industry-leading institution such as the Shanghai Futures Exchange. The opportunity to share intellectual resources with China’s largest futures exchange holds the potential of bringing numerous benefits to customers worldwide. The CBOT, known globally for its transparent, liquid markets and innovative products, looks forward to working with the SHFE to provide customers of both exchanges with access to key risk management tools and with the reliable markets they require.”

Shanghai Futures Exchange CEO Jiang Yang said, “CBOT is the oldest and one of the largest derivatives exchanges in the world. To establish this partnership with the CBOT is a strategic move SHFE takes in expanding its market size and enhancing market risk management. It is expected that the cooperation will give us more opportunities for development.”

As part of the agreement, the SHFE and the CBOT will closely share information about the concepts and procedures involved in the operation of futures markets and methods of managing risk. Both exchanges will work cooperatively on new product research and on the development of markets for new derivative products.