CME Group, the world's leading and most diverse derivatives marketplace, and China Foreign Exchange Trade System (CFETS), the major trading platform and pricing center for RMB and related products, announced today they have signed an agreement on cooperation to explore opportunities and promote each other's market infrastructure and products.
The signing of this agreement marks an important step in implementing the outcome from the 7th US and China Strategic Economic Dialogue. Under this definitive agreement, CME Group and CFETS have committed to participate in the joint development and innovation of offshore RMB products. Both parties have also committed to greater connectivity in product distribution, with CME Group facilitating its customers to trade China interbank products, and CFETS facilitating China interbank market participants to trade CME Group's products.
"We are pleased to sign this agreement with CFETS and strengthen our close working relationship," said Terry Duffy, Executive Chairman and President of CME Group. "This innovative agreement should increase distribution of our respective products and provide enhanced opportunities to users of our markets."
"This agreement has put in place definitive parameters for both parties to further develop our offerings," said Phupinder Gill, Chief Executive Officer of CME Group. "China is a very important market for us, and we are confident that our enhanced cooperation with CFETS will further strengthen the relationship and better serve the needs of our respective markets."
"This collaboration between CFETS and CME Group is an important attempt by China and the United States to extend cooperation in the financial sector, and will combine complementary advantages as well as create mutual benefits," said Pei Chuanzhi, President of CFETS. "The cooperation will promote the connectivity and mutual opening-up of both countries' financial markets, further meet the demands of market participants for hedging against the risks of interest and foreign exchange rates, advance bilateral trade and economic development, and allow the financial markets to provide better support to the real economy."
