LONDON, Oct. 19, 2015 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, and China
Construction Bank, a leading commercial bank in
China, announced today that they have signed a Memorandum of
Understanding (MOU) to support the further strengthening of their
business relationship.
CME Group is now able to offer Offshore Chinese Renminbi (CNH)
Futures Contracts with physical delivery in London for the first time, which will be
offered via CME Europe, CME Group's European exchange. They will be
supported by China Construction Bank (CCB), the sole-People's Bank
of China-designated clearing bank
of RMB in London.
Under the MOU, CCB also intends to participate in the London
Silver Pricing, as administered by CME Benchmark Europe Limited, as
well as to facilitate the trading of CME Group products for CCB's
customers in China.
"As the largest exchange-traded FX marketplace, we are pleased
to partner with CCB which is one of the leading Chinese commercial
banks and the official clearing bank of Chinese Renminbi in
London," said Terry Duffy, Executive Chairman and President of
CME Group. "We believe this relationship will generate multiple
benefits for the marketplace and drive innovation across a range of
asset classes."
Physically deliverable futures contracts for USD/CNH and EUR/CNH
have been available on CME Europe since the European exchange
launched in April 2014, delivering
into Hong Kong. Now that CME
Clearing Europe, which provides clearing services for CME Europe,
intends to work with CCB, CME Europe plans to amend these contracts
so that physical delivery will take place in London, bringing cost and time-saving
advantages to market users.
"The ability to transact during London hours is of paramount importance to
those institutions who value flexibility in managing their
positions in markets where prices can move sharply in short periods
of time," said William Knottenbelt,
Senior Managing Director and Head of International, CME Group. "CME
Group and CCB have shared a strong desire to promote RMB liquidity
in London. We are committed to
building out the necessary infrastructure and RMB products for a
thriving marketplace as well as extending our partnership into
other areas."
"CCB wants to support the development of the offshore RMB market
in London through our engagement
with an innovative financial institution such as CME Group," said
CCB's Chairman, Mr. Hongzhang
Wang.
CME Group and CCB intend to engage with the Chinese and UK
authorities on the benefits of the development of RMB products
across a range of asset classes as well as improving access for
Chinese companies and financial institutions to international
capital and the London
markets.
A complete list of products, members and product specifications
can be found at http://www.cmegroup.com/europe/. Clearing
services for CME Europe are provided by CME Clearing
Europe.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) 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, its trading facilities in New
York and Chicago, and through
its London-based CME Europe derivatives
exchange. CME Group also operates one of the world's leading
central counterparty clearing providers through CME
Clearing and CME Clearing Europe, which offer 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 www.cmegroup.com.
China Construction Bank Corporation, established in October 1954 and headquartered in Beijing, is a leading large-scale joint stock
commercial bank in Mainland China with world renowned reputation.
The Bank was listed on the Hong Kong Stock Exchange in October 2005 (stock code: 939) and listed on the
Shanghai Stock Exchange in September
2007 (stock code: 601939). At the end of 2014, the
Bank's total assets reached USD 207.9
billion, ranking it second amongst the Top 1000 World Banks
(The Banker, 2014) based on Tier 1 capital.
The Bank has an extensive customer base with established banking
relationships with many of the largest business groups and leading
companies in industries which are strategically important to
China's economy. With over 14,856
branches and sub-branches in Mainland China, the Bank provides
services to about 3.48 million corporate customers and 314 million
personal customers. Overseas branches are maintained in
London, Luxembourg, Paris, Milan,
Hong Kong, Singapore, Frankfurt, Amsterdam, Johannesburg, Tokyo, Osaka,
Seoul, New York, Ho Chi
Minh City, Sydney,
Melbourne, Taipei, Brisbane and Toronto, and various subsidiaries fall under
the group, such as CCB Asia, CCB International, CCB London, CCB
Russia, CCB Dubai, CCB Europe, CCB New Zealand, CCB Principal Asset
Management, CCB Financial Leasing, CCB Trust, CCB Life, CCB Futures
and Sino-German Bausparkasse.
As a leading commercial bank in China, the Bank provides a comprehensive range
of commercial banking products and services. The business consists
of three principal segments: corporate banking, personal banking,
and treasury operations. Its corporate banking business comprises
the provision of a range of financial products and services to
corporations, government agencies and financial institutions,
including corporate loans, trade finance, deposit taking and wealth
management services, agency services, financial consulting and
advisory services, cash management services, remittance and
settlement services, custody services and guarantee services.
The personal banking business focuses on the provision of a
range of financial products and services to individual customers,
such as personal loans, deposit taking and wealth management
services, card business, remittance services and agency services.
The treasury operations business includes inter-bank money
market transactions, repurchase and resale transactions, investment
in debt securities, proprietary trading in derivatives and foreign
currency, customer driven derivatives, foreign currency and
precious metal trading and issuance of debt securities. For
further information about its products and services visit
www.ccb.com.
China Construction Bank (London) Limited is a wholly owned subsidiary
of China Construction Bank Corporation, China and is registered in England & Wales, registered number 06455352. China
Construction Bank (London) Limited
is authorised by the Prudential Regulation Authority and regulated
by the Financial Conduct Authority and the Prudential Regulation
Authority (www.uk.ccb.com).
CME-G
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SOURCE CME Group