CME Group Adds China Merchants Futures as Clearing Member

CME Group has approved Hong Kong-based China Merchants Futures, a wholly-owned unit of China Merchant Securities Company as a clearing member of CME and its designated contract markets CBOT, NYMEX and COMEX.
By Jake Safane(2147484770)
CME Group has approved Hong Kong-based China Merchants Futures, a wholly-owned unit of China Merchant Securities Company as a clearing member of CME and its designated contract markets CBOT, NYMEX and COMEX.

“Obtaining CME Group clearing membership is a part of China Merchants Securities’ strategy to meet the huge demand from the mainland China to hedge the commodities price risks globally on major commodities exchanges,” says Stephen Chan, chief executive officer of China Merchants Futures. “We see this membership as another step towards globalizing our business.”

China Merchant Futures is the fifth Asian clearing member of CME and the 72nd globally. The approval coincides with CME building up its operations in Asia recently, such as with the allowance in 2012 of offshore Renminbi deposits as collateral on all exchange futures products cleared through CME Clearing. During the second quarter of 2013, total trading volume in Asia for CME’s core business rose 28% year over year.

“Having clearing member firms in Asia continuing to join, allows us to better address the needs of our increasing client base in the region,” says Kim Taylor, president, CME Clearing. “Essential for many of our regional customers is the local experience and presence that China Merchants brings with their membership, and which we continue to build on.”

“With Greater China clients now gaining access to global markets through financial institutions such as China Merchants Futures, we look forward to further support their participation and their clients,” says Julien Le Noble, managing director, head of Asia Pacific, CME Group. “As we further enhance and expand our network of clearing members in the region, we will continue to bring our wide range of global benchmark products to new Asian client segments.”

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