Expanding its Asian offerings, derivatives marketplace, the CME Group, has added deliverable renminbi (CNH) futures to its products and renewed its memorandum of understanding with the Shanghai Futures Exchange (SHFE). In Brazil, it has launched US dollar-denominated Ibovespa futures.
CNH futures expand CME’s overall Chinese renminbi product suite, which currently includes both cash-settled CNY futures and clearing for OTC non-deliverable forward (NDF) products in USD/CNY.
“The renminbi market has grown significantly during the past two years and is highly active both during as well as outside of Asian trading hours. As the renminbi continues to internationalise, it will become increasingly important to provide global access to these products,” said Derek Sammann, senior managing director, interest rates and FX products, CME Group.
Over the past few years, the CME has increasingly looked towards China for growth. Its agreement with the Shanghai Futures Exchange – first initiated in 2003 and this week renewed indefinitely – aims at expanding global distribution of the firm’s products and adding new customers throughout Asia.
“Through this [agreement], we continue to build on our commitment to expand the reach of our markets and products to this increasingly influential region,” said Phupinder Gill, CEO, CME. “We continue to look for opportunities to learn more about the Chinese financial markets, and by working with the Shanghai Futures Exchange we can strengthen our relations in the country and explore the long-term potential of developing exchange-traded derivatives in China.”
Outside Asia, CME has also maintained focus on tapping other prominent emerging markets, such as Brazil. This week’s US dollar-denominated Ibovespa futures launch heralds a new cross-listing arrangement which provides CME customers with access to Brazil’s key benchmark product, the Ibovespa, a total return index of 69 stocks traded on BM&F Bovespa. It lets clients improve their ability to manage market and counterparty credit risk exposure across various asset classes.