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Chicago Mercantile Exchange Inc. (CME) and Singapore Exchange (SGX) are pleased to announce the renewal of their Mutual Offset System (MOS) agreement for an additional three years beginning February 2007 to run through 2010. This extension of the agreement reinforces the importance and benefits of the mutual offset arrangement to both exchanges and the global derivatives marketplace.
The MOS gives market participants the choice of clearing certain products at either CME or SGX. Currently these include: Three-Month Eurodollar Futures, Three-Month Euroyen Futures and yen-denominated Nikkei 225 Index Futures. New products launched by CME and SGX will also be considered for inclusion in this agreement.
“The MOS was a landmark agreement when we first signed it more than 20 years ago. We are pleased to be able to extend this important alliance with SGX for the benefit of Eurodollar traders throughout Asia,” said CME Chairman Terrence A. Duffy.
“The renewal of this agreement is an important part of our continued growth in Asia,” said CME Chief Executive Officer Craig S. Donohue. “Through this partnership, we will extend the mutual offset system benefits of real-time clearing and inter-exchange transfer services, allowing market participants to execute their risk management programs in an effective and timely manner.”
SGX CEO, Mr Hsieh Fu Hua said, "We are very pleased to strengthen our longstanding partnership with CME through the innovative mutual offset link. This arrangement enhances round-the-clock trading of leading interest rate and stock index products by giving market participants the ability to clear trades in their own time zone. Market feedback indicates this is an important feature and I am glad that we can continue to make it available. ”
The close partnership between CME and SGX began in 1984 when the first MOS agreement was signed. This international agreement remains the longest and most successful between two derivatives exchanges.
Singapore Exchange
Singapore Exchange Limited (SGX) is Asia-Pacific's first demutualised and integrated securities and derivatives exchange. SGX was inaugurated on 1 December 1999, following the merger of two established and well-respected financial institutions - the Stock Exchange of Singapore (SES) and the Singapore International Monetary Exchange (SIMEX).
On 23 November 2000, SGX became the first exchange in Asia-Pacific to be listed via a public offer and a private placement. Listed on its own bourse, the SGX stock is a component of benchmark indices such as the MSCI Singapore Free Index and the Straits Times Index. For more information, please visit SGX website at www.sgx.com.
Chicago Mercantile Exchange
CME (www.cme.com) is the world’s largest and most diverse financial exchange. As an international marketplace, CME brings together buyers and sellers on the CME Globex® electronic trading platform and on its trading floors. CME offers futures and options on futures in these product areas: interest rates, stock indexes, foreign exchange, agricultural commodities, energy, and alternative investment products such as weather, real estate and economic derivatives. CME is a wholly-owned subsidiary of Chicago Mercantile Exchange Holdings Inc. (NYSE, NASDAQ: CME), which is part of the Russell 1000® Index and the S&P 500® Index.
