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Dalian Commodity Exchange (DCE) and Singapore Exchange (SGX) renew the Memorandum of Understanding (MOU) in Singapore on November 7. DCE Party Chief and Chairman Li Zhengqiang and SGX CEO Loh Boon Chye sign the MOU on behalf of the two sides. DCE and SGX will establish and consolidate a long-term cooperation mechanism and further promote their international business.
SGX, an important securities and futures exchange in the Asian-Pacific region, plays an important role in the global derivatives market. DCE and SGX signed the first MOU in March 2014. Over the past 5 years, they’ve set up a bridge for exchange, communication and business cooperation under the framework of this MOU. DCE has taken part in the Singapore Iron Ore Forum organized by SGX and set up a booth there; and SGX has come to visit DCE several times for business exchange, contributing to the new progress of their cooperation.
In recent years, DCE has kept expanding international cooperation and promoting the opening-up and development, leading to the remarkable increase of its international influence. In particular, DCE successfully ushered overseas traders into the iron ore futures in May 2018, marking the opening-up of the first listed futures product in China. Iron ore futures is the largest and the only iron ore derivatives product that is fully physically delivered in the world. Over the past one year since the opening-up of iron ore futures, the trading scale of overseas clients has increased rapidly, and the market structure has been further improved, providing enterprises in the global iron and mine industry chain with an effective price signal and risk-avoiding instrument.
Taking the opportunity of renewing the MOU, the two sides will carry out further cooperation in information sharing, high-level mutual visits, personnel exchange and market development to facilitate the common development of the derivatives market of the two countries. In the future, DCE will consolidate and expand the connection with overseas derivatives market, deepen the diversified and open strategic transformation, and serve the “Belt and Road” Initiative construction, thus better serving the real economy and national strategy.
