CHICAGO and SHANGHAI, Sept. 21, 2015 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, and China Securities Index Co. Ltd, today announced that they have signed an index development and product licensing agreement.
Under this agreement, CME Group will grant CSI a license to use certain CME Group market data for the purposes of developing, calculating and disseminating commodity indexes. The first product to be jointly developed will be the CSI CME Group China Commodity Consumption Index, which is based on the end-of-day settlement prices for CME Group futures contracts on Soybeans and Corn, listed on and subject to the rules of CBOT; as well as Natural Gas, West Texas Intermediate Crude Oil, and Copper, listed on and subject to the rules of NYMEX; and Gold and Silver, listed on and subject to the rules of COMEX. The agreement also provides for the listing, trading and clearing of derivatives products based on the commodity indexes to be developed by CSI and CME Group.
"We are pleased to enter into this strategic partnership with CSI," said Terry Duffy, Executive Chairman and President of CME Group. "As Chinese futures markets internationalize, the new products that we develop with CSI will provide enhanced risk management opportunities to users in the global commodity markets."
"China is a key market for us, and this agreement with CSI is another example of our commitment to serve the needs of market users based in China," said Phupinder Gill, Chief Executive Officer of CME Group. "We look forward to working closely together with CSI in the development and innovation of new products."
"As capital markets liberalize, the demand for overseas financial derivatives by Chinese investors will increase gradually," said by Ma Zhigang, the Chief Executive Officer of CSI. "CSI has developed indexes based on multiple types of asset classes in different markets for over ten years. The cooperation with CME Group is an important component of the overseas development strategy of CSI. We look forward to working together with CME Group to provide diverse indexes and derivatives products to meet the needs of the markets."
About CME Group
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. KCBOT, KCBT and Kansas City Board of Trade are trademarks of The Board of Trade of Kansas City, Missouri, 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.
About China Securities Index Co. Ltd
China Securities Index Co. Ltd (CSI) is the largest index provider in China, which indices cover A-shares, bonds, commodity futures, international securities and other asset classes. As a joint venture between the Shanghai Stock Exchange and the Shenzhen Stock Exchange, CSI is a professional business entity specializing in the creation and management of indices and index-related services.
CSI is dedicated to serving the capital market and promoting financial innovation relying on the information and technical advantages of the two exchanges. Focusing on the series of CSI indices, exchange indices and customized indices, CSI aims to become the leading index provider in China.
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SOURCE CME Group