CME and OSKA signed MOU
CME Group has signed a memorandum of understanding with the Japan’s largest derivatives market, the Osaka Securities Exchange, under which both parties will jointly develop new products and services. The agreement is part of the US derivatives exchange’s plans to expand its global footprint to the BRIC countries.
CME Group has long been planning to expand into markets including Brazil, Russia, India, China and Korea via partnership agreements with local counterparts. It has already established a partnership with the Korea Exchange and is currently working on proposals for the local futures market.
The Japanese exchange is also looking at expanding its global coverage, Michio Yoneda, president and CEO of Osaka Securities Exchange, explains: “We hope this new partnership will advance the presence of Osaka Securities Exchange throughout the world. Especially, the futures products on the Nikkei Stock Average, which are listed on both of our exchanges and well established as a benchmark of the Japanese market, have an intrinsic potential for further growth through mutual cooperation.”
CME and KRX signed 5 years contract for KOSPI 200 futures
CME Group and the Korea Exchange (KRX) have signed a five year agreement for the KOSPI 200 futures contract to be listed on CME Globex, the electronic trading platform of CME Group.
The terms of the agreement include the creation of a telecommunications hub in Seoul and will mark the first time the KRX has embarked on a third party agreement for its KOSPI 200 product.
More than 30 million KOSPI 200 futures, based on the KOSPI 200 stock index of the largest South Korean companies as measured by market capitalisation, traded through July of 2008. Under the proposed agreement, CME Group will match the trades, with the KRX continuing to clear and settle their products. A memorandum of intent was signed between the two exchanges last year.
The contract, which will trade from 2am to 3pm local time Chicago, or 5pm to 6am local time Seoul, will be offered on the same platform as CME Group products, including derivatives on: the S&P 500, Nasdaq-100, Dow Jones Industrial Average, MSCI Emerging Markets and MSCI EAFE stock indexes; Eurodollars, US Treasury bonds and notes; foreign exchange; grains and livestock; energy; metals; weather and real estate.
“The addition of the KRX’s KOSPI 200 contract onto CME Globex will be an important part of our continued global expansion,” says CME group executive chairman Terry Duffy.
“This agreement with the KRX is another example of CME Group’s continued expansion into the Asia marketplace,” adds CME group CEO Craig Donohue. “Asia is a critical market and key area of focus for our long term growth strategy. By adding the KOSPI 200 futures to CME Globex, we will increase worldwide access to this important benchmark product.”
Chairman and CEO of the KRX Jung-hwan Lee says: “This agreement for trading of KOSPI 200 futures on CME Globex will further strengthen the strategic cooperation between the CME Group and the KRX, and together, the two organisations plan to lead the global derivatives market.”
Source: A-Team Asian Markets, 09.09.2008
Filed under: News, Asia, CME, Derivatives, Exchanges, Japan, Korea, KRX Kores Stock Exchange, OSE Osaka Stock Exchange
