Published By : 19 Oct 2015 | Published By : QYRESEARCH
One of the China’s leading commercial banks, China Construction Bank, and CME Group, the most diverse market for derivatives in the world have announced that they have signed an MOU in order to strengthen the business relationship between them.
After signing the MOU, CME Group has got the authority to offer contracts related to Offshore Chinese Renminbi Futures with physical delivery in London. CME will be offering it for the first time and with the help of CME Europe, the European exchange of CME Group. The China Construction Bank (CCB), which is the only designated clearing bank of Renminbi in London, will support CME in this process, as per the MOU. CCB is also planning to take part in the London Silver Pricing as well as to aid into the trading of CME Group products for the customers of CCB in China.
The executive chairman and the president of the CME group, Mr. Terry Duffy expressed their happiness on this partnership and expected this partnership to be beneficial for the market and drive innovation among a wide range of asset classes.
Futures contracts, which are physically deliverable have been available for EUR/CNH and USD/CNH on CME Europe since they have launched in European stock exchange in April 2014. As the CME Clearing Europe plans to work with CCB now, the CME Europe intends to make amendments in these contracts in order to make physical delivery happen in London, the U.K., providing benefits on cost and time to the customers.
Mr. William Knottenbelt, the senior MD and the international head of CME Group stated that the ability to transact between London hours is of extreme importance to several institutions, valuing flexibility to manage their positions in the price-sensitive markets