China will begin cooperation with Chicago Mercantile Exchanges, world's largest forex trading floor, on market information, derivatives design, etc., as learned by International Financial News from China Forex Center. The cooperation will begin with products development, system construction and personnel training.

On June 8, an MOU on cooperation was signed between China Forex Center and Chicago Mercantile Exchanges in Chicago. Su Ning, Vice Governor of the People's Bank of China and John Snow, US Finance Secretary were present at the signing ceremony.

Under this MOU, China Forex Center offers analysis and information on China's forex and monetary market, including policies, regulations, market operation and development, so that Chicago Mercantile Exchange will have a better understanding about China's financial market. CME helps China Forex Center get familiar with the operation, products and rules of international forex derivatives market, as well as assist in the design of derivative products, business exploration, marketing and training.

Lin Yuli, President of China Forex Center said at the ceremony that the sincerity and mutual understanding built up between the two sides through years of relationship had laid a good foundation for the collaboration and that common goals have led to closer and deeper partnership between them. He believes the cooperation would favor the further exchanges and communication between the two sides, help their institution draw on international successful experience and give their US partner more idea about China's financial market and more access to this market.

Terry Duffy, Chairman of CME, said Asia was what his institution was eyeing to tap into and the MOU would promote the long-term cooperation between the two sides, advance the development of China's forex market and improve China's awareness of designing and using derivatives.

Craig Donohue, CEO of CME, added that as expanding their products globally and having new Asian clients was part of CME's long-term strategy, the agreement would consolidate their existing operation in Australia, Hong Kong, Japan, Shanghai and Singapore and lay a significant foundation for development of China's financial market and exchanges between Chinese and American financial sectors.

Leo Melamed, Chairman Emeritus and senior policy advisor of CME also spoke highly of the bilateral cooperation. He saw the event of world significance, proving China was marching toward market economy in a fast speed.

As an affiliate under the direct control of the People's Bank of China, China Forex Center is specialized in inter-bank forex and RMB borrowing, as well as the transaction, information and supervision services for bond market. It has experienced rapid growth in recent years with expanding inter-bank business and membership. For the first five months of this year, deals in RMB yuan and forex market totaled 5.5 trillion yuan and 64.69 billion USD respectively. And the membership has increased to 963 for RMB market and 349 for forex market.

Chicago Mercantile Exchanges is the largest futures exchanges in the US and the world's biggest forex trading market.

By People's Daily Online