TSE President and Chief Executive Officer Masaaki Tsuchida commented, "This collaboration with the CME, one of the world's leading derivatives exchanges, is a wonderful opportunity for the TSE derivatives market. Our deliberations will undoubtedly lead to a partnership which will fulfill the needs of international participants in both our markets; and we look forward to watching the TSE derivatives market go from strength to strength on the international stage. We expect our derivatives market to join our equities market in acting as an Asian hub linking the European and North American time zones."
"We are honored to be the first international derivatives partner chosen by the TSE, one of Asia's premier equities and derivatives markets," said CME Chairman Scott Gordon. "The CME intends to be an integral partner with the TSE and other exchanges worldwide in providing innovative products and trading and clearing efficiencies to market users."
"An expanding international presence is increasingly important as our customers become more global in nature," said CME President and Chief Executive Officer Jim McNulty. "The CME expects to be an important hub of liquidity and a clearing house in the emerging network of international derivatives exchanges. One element of our global strategy is to extend our product offerings across international borders wherever opportunity beckons."
The TSE and the CME intend to explore collaborative ventures providing access for their members to trading on the opposite exchange and cross-margin programs that allow members to reduce their margin requirements because of offsetting net positions on the two exchanges. Both exchanges are interested in including other exchanges, and clearing and settlement organizations in any new joint programs.
