CME Group and China Foreign Exchange Trade System (CFETS) have signed a memorandum of understanding (MOU) in Shanghai.
The goal of the MOU is to develop a joint venture in the US based on the seventh US and China strategic economic dialogue. Both countries are interested in working together to explore opportunities, promote each other's market infrastructure and products via cooperation programs and help facilitate the development of both countries' markets, according to the memorandum.
"We are pleased to be able to play an active role in promoting trade and cooperation between the US and China," said Terry Duffy, executive chairman and president of CME Group, in a statement. "As China continues on its path of financial market liberalization and renminbi (RMB) internationalization, we believe that there are unique opportunities for CME Group and CFETS to work closely together to create a marketplace that best serves needs of the derivatives industry."
Currently, CFETS is China's largest marketplace for interest rates and foreign exchange products, in addition to being a major trading platform and pricing center for RMB.
"Our cooperation will bring mutual benefits to both organizations, facilitate the connectivity and opening up of financial markets of China and the US, as well as meet the demand of Sino-US economic entities to hedge their interest rates and foreign exchange risks," said Pei Chuanzhi, president of CFETS, in a statement. "At the same time, our collaboration will enable financial markets to drive economic growth, enhance the welfare of the people of both countries, and further promote international collaboration."
While at Sibos Toronto, James shares some interviews covering topics on blockchain, fintechs and cybersecurity.Subscribe to Weekly Wrap emails