CME Group, China Construction Bank Sign MOU

As part of the agreement, CME can now offer offshore Chinese renminbi (RMB) futures contracts with physical delivery in London for the first time. The contracts will be available on CME Europe and supported by CCB.

CCB also plans to take part in London silver pricing, which is performed by CME Benchmark Europe Limited, and help its clients trade CME products.

Physically-deliverable futures contracts for USD/RMB and EUR/RMB through Hong Kong have been available on CME Europe since April 2014. The ability to offer physical delivery through London should cut down on cost and time for users.

CME and CCB also have plans to work with Chinese and UK regulators to develop RMB products in other asset classes and increase Chinese companies' and institutions' access to international capital and London markets.

"The ability to transact during London hours is of paramount importance to those institutions who value flexibility in managing their positions in markets where prices can move sharply in short periods of time," said William Knottenbelt, senior managing director and head of international for CME, in a statement. "CME and CCB have shared a strong desire to promote RMB liquidity in London. We are committed to building out the necessary infrastructure and RMB products for a thriving marketplace as well as extending our partnership into other areas."

In August, CME signed an MOU with China Foreign Exchange Trade System (CFETS).