"CBOE is pleased to have the opportunity to partner with the Shenzhen Stock Exchange in a cooperative effort to assist the SSE in establishing their equity derivatives business," said CBOE Chairman and CEO William J. Brodsky. "We look forward to building a relationship with them that can lead to the development of new products, the expansion of markets, and the creation of future opportunities that may be mutually beneficial not only for both of our exchanges, but for both of our countries."
"The derivatives market has been rapidly growing since the 1970s with Chicago leading the industry. China's financial derivatives market, however, is still in its preliminary stage, with interest rates and exchange rates yet to be fully commoditized. Great efforts have been spent in the development of derivative products and the launch of equity derivatives is high on our agenda," said Dr. Zhang Yujun, President and CEO of the Shenzhen Stock Exchange. "The ongoing non-tradable shares reform creates favorable conditions for this initiative and we believe that establishing a long-term, cooperative relationship between SSE and CBOE will provide reciprocal benefits to both markets. We are hopeful that the Shenzhen market can benefit from the positive experience of our association with American markets as we move forward in further developing our marketplace."
The MOU between CBOE and SSE lays the foundation for the exchange of educational resources and information with respect to pursuing cooperation and potential joint business initiatives between the two exchanges with regard to options and other derivatives products. Earlier this year, CBOE signed similar MOUs with the Dalian Commodity Exchange, the Shanghai Futures Exchange, the Shanghai Stock Exchange, and the Zhengzhou Commodity Exchange.
The Shenzhen Stock Exchange (SSE), established on December 1, 1990, is a mutualized organization that provides a venue for securities trading under the authorization of the China Securities Regulatory Commission (the CSRC). A broad spectrum of market participants, including 500 plus listed companies, 35 million institutional and individual investors, and about 200 exchange members, create the market at the SSE. Over the past 15 years, capital raised has amounted to an equivalent of $807 million (U.S. dollars) traded on the SSE. For more information about SSE and its products, visit the SSE website at: http://www.szse.cn/main/en/
CBOE, the world's largest options marketplace and the creator of listed options, is regulated by the SEC. For additional information about the CBOE and its products, access the CBOE website at: http://www.cboe.com/
