The Chicago Mercantile Exchange (CME) and the Shanghai Stock Exchange (SSE) say they have signed a
Memorandum of Understanding (MOU) to create a forum for information sharing between the two organizations regarding the potential development of derivatives products in China.
"Part of CME's long-term growth strategy is to expand global distribution of our products and to add new customers throughout Asia," said CME Chairman Terry Duffy.
Geng Liang, Chairman of the SSE, said, "The SSE is pleased to have this opportunity to work closely with CME through this agreement. And we believe this MOU will promote broader cooperation, exchange of information and an ongoing relationship between both institutions."
Under the terms of the MOU, the SSE will provide CME with insights and information on the equities market in China, including regulations and policies, market specifications and development conditions in order to assist CME in gaining a better understanding of China's financial marketplace. In turn, CME will help the SSE become more familiar with international derivatives market practices, products and regulations, and will also provide assistance on the design of derivatives products, business development, marketing and training.
The Shanghai Stock Exchange was founded on November 26, 1990, and began operations on December 19 the same year. SSE is China's largest, most prominent stock market in terms of number of listed companies, number of shares listed and total market value of shares traded, and is a non-profit-making membership institution directly governed by the China Securities Regulatory Commission (CSRC). The SSE bases its development on the principle of "legislation, supervision, self-regulation and standardization" to create a transparent, open, safe and efficient marketplace. The SSE endeavors to realize a variety of functions: providing marketplace and facilities for securities trading; formulating business rules; accepting and arranging listings; organizing and monitoring securities trading; regulating members and listed companies; and managing and disseminating market information.