The China Foreign Exchange Trade System (CFETS) and the Chicago
Mercantile Exchange (CME) Wednesday exchanged copies of an
agreement on cooperation in trading of foreign exchange and
interest rate futures and options on futures.
Xie Duo, president of the CFETS and Phupinder Gill, president of
CME, exchanged the respective copies of the agreement.
According to the agreement, members of CFETS will gain access to
electronic trading of CME foreign exchange and interest rate
products, and CFETS will become a CME super-clearing member,
providing services for investors based in the Chinese mainland who
will trade CME foreign exchange and interest rate products. CME and
CFETS will jointly provide consulting and technical services to
CFETS members and staff.
The agreement indicates that CFETS can provide more foreign
exchange and interest rate products to its members, and it is an
important step in the development of China's foreign exchange
market, said an official with CFETS, adding that it would prompt
the further opening of China's financial market.
The CME is the largest financial exchange in the world and
offers the largest regulated foreign exchange derivatives trading
complex in the world.
Founded in Shanghai in 1994, the CFETS is the first national
foreign exchange trading system in China. It is a non-profit public
institution with independent accounts under the head office of the
People's Bank of China.
Serving as an inter-bank foreign exchange market, the CFETS
adopts a membership system, providing services in foreign exchange
trading and financial products for Chinese enterprises, joint
ventures and foreign-funded firms in China.
(Xinhua News Agency April 6, 2006)