CME Group and Shanghai Futures Exchange Renew Memorandum of Understanding

CME Group, the world’s leading and most diverse derivatives marketplace, and the Shanghai Futures Exchange (SHFE), the preeminent futures commodities market in the People’s Republic of China, announced today that they have renewed their existing Memorandum of Understanding (MOU), which was first initiated in March 2003 to create a forum for information sharing between the two organizations regarding the potential development of derivatives products in China.
A key part of CME Group’s international growth strategy is to expand global distribution of our products and to add new customers throughout Asia,” said CME Group Executive Chairman and President Terry Duffy. “In the years ahead, we believe our long-standing relationship with the Shanghai Futures Exchange will continue to build upon the goals of our customers and provide an important foundation for the development of China’s financial markets.”
“Through this MOU, we continue to build on our commitment to expand the reach of our markets and products to this increasingly influential region,” said CME Group CEO Phupinder Gill. “We continue to look for opportunities to learn more about the Chinese financial markets, and by working with the Shanghai Futures Exchange we can strengthen our relations in the country and explore the long-term potential of developing exchange-traded derivatives in China.”
Leo Melamed, CME Chairman Emeritus added, “The pace of economic expansion in China since the decision to move toward a market economy continues to be significant, even in spite of the recent credit crisis, and its leaders should be applauded for this transition. CME Group has long believed that the continued expansion of China’s economy may be achieved by advancing the growth of China’s financial futures markets, allowing banks, corporations and financial institutions to use these valuable hedging tools to manage risk.”
Under the terms of the MOU, which were established in March 2003, the SHFE will provide CME Group with insights and information on the commodities markets in China, including regulations and policies, market specifications and development conditions in order to assist CME Group in gaining a better understanding of China’s commodities marketplace. In turn, CME Group will help the SHFE 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.
About CME Group
As the world’s leading and most diverse derivatives marketplace, CME Group ( is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the world’s leading central counterparty clearing providers, which offers clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are registered trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other trademarks are the property of their respective owners. Further information about CME Group (NASDAQ: CME) and its products can be found at
About the Shanghai Futures Exchange
Shanghai Futures Exchange (SHFE) is organized under relevant rules and regulations. A self-regulated entity, it performs functions that are specified in its bylaws and state laws and regulations. It is regulated by the China Securities Regulatory Commission (CSRC). At present, futures contracts underlying commodities, i.e., gold, silver, copper, aluminum, lead, steel rebar, steel wire rod, natural rubber, fuel oil and zinc, are listed for trading. In order to realize the functions of the futures market as price discovery and risk hedging, and serve the development of the national economy, Shanghai Futures Exchange is establishing a secure, orderly, efficient market mechanism and an open, fair, equitable and transparent market environment. There are over 200 members now in Shanghai Futures Exchange, among which about 80% are futures brokerage firms. And the exchange has already set up more than 250 distant trading terminals nationwide.
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