Bursa Malaysia, CME Group to Establish Strategic Partnership in Derivatives Markets
August 10 2009 - 8:43PM
PR Newswire (US)
KUALA LUMPUR, Malaysia and CHICAGO, Aug. 10 /PRNewswire-FirstCall/
-- In line with the Prime Minister of Malaysia, Dato' Sri Najib Tun
Abdul Razak's acknowledgement on Bursa Malaysia Berhad's (Bursa
Malaysia) cooperative efforts with CME Group Inc (CME Group) to
develop a robust derivatives market, the two exchanges announced
today that they are working towards a collaboration involving trade
matching services, product licensing and minor cross-equity
investments. The CME Group equity stake will relate to Bursa
Malaysia's derivatives business. Specific terms will be announced
at a later date. Both parties announced that this initiative is
subject to regulatory approval. With this strategic partnership,
CME Group will use Bursa Malaysia's RM-denominated CPO futures
contract (FCPO) settlement prices, which will enable CME Group to
develop a USD-denominated cash-settled CPO futures contract and its
related options for listing on one of CME Group's US registered
exchanges. This product is expected to be traded on CME Globex,
which is CME Group's electronic trading platform. Dato' Yusli
Mohamed Yusoff, Chief Executive Officer of Bursa Malaysia, said,
"The proposed collaboration is not only timely but also necessary
as it would contribute to the overall growth of the Malaysian
capital market. It is also aimed at globalising the Malaysian crude
palm oil (CPO) futures market. Consequently, part of this proposed
collaboration will enable Bursa Malaysia Derivatives to list its
derivatives products on CME Globex. Through this collaboration, we
expect the resulting expertise and knowledge transfer to further
facilitate our goal for a robust derivatives exchange." "This
initiative, when implemented, will enable our customers from other
markets to access Bursa Malaysia's derivatives markets and products
on CME Globex, the leading and most widely distributed electronic
trading platform in the world, further demonstrating our
flexibility to operate in multiple jurisdictions for the benefit of
customers worldwide," said Terry Duffy, Executive Chairman of CME
Group. "Our proposed strategic partnership with Bursa Malaysia will
further enhance our globalisation efforts by facilitating our
customers' efficient access to Bursa Malaysia's important markets,"
said Craig Donohue, Chief Executive Officer of CME Group. "This
proposed partnership will allow us to continue to expand our
transaction processing business opportunities, increase our
presence in Asia, as well as help our Malaysian partners grow their
business." About CME Group As the world's largest and most diverse
derivatives marketplace, CME Group (http://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
and its trading facilities in New York and Chicago. CME Group also
operates CME Clearing, one of the largest central counterparty
clearing services in the world, which provides clearing and
settlement services for exchange-traded contracts, as well as for
over-the-counter derivatives transactions through CME ClearPort .
These products and services ensure that businesses everywhere can
substantially mitigate counterparty credit risk in both listed and
over-the-counter derivatives markets. About Bursa Malaysia Bursa
Malaysia Berhad is a public company limited by shares under the
Companies Act 1965. Bursa Malaysia is an approved exchange holding
company under Section 15 of the Capital Markets and Services Act
2007. Other companies in the Bursa Malaysia Berhad Group of
companies include a stock exchange, a derivatives exchange, an
off-shore international financial exchange, equity and derivatives
clearing houses, a central depository, an information services
provider and an Information Technology services provider.
DATASOURCE: CME Group CONTACT: Geeta Balakrishnan, +603 2034 7374,
, or Delyana Nordin, +603 2034 7161, , both of Bursa Malaysia
Berhad; or Allan Schoenberg, +1-312-930-8189, , or Mary Haffenberg,
+1-312-930-3435, , both of CME Group Web Site: http://www.cme.com/
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