The Chicago Board Options Exchange (CBOE) and the Shanghai Futures Exchange (SHFE), the largest futures exchange in The People’s Republic of China, have signed a Memorandum of Understanding (MoU) which lays the foundation for the sharing of information for the potential development of options and other derivatives products.
As with the Dalian and Zhengzou MoUs, the agreement will focus initially on educational initiatives, but may later include joint marketing and product development.
“We are extremely pleased to start on a path of communication and cooperation with Shanghai Futures Exchange that will lead to future business relationships,” says CBOE Chairman and CEO William J. Brodsky. “CBOE created the stock options marketplace in the United States, and we look forward to the opportunity to share our expertise on this valuable risk management tool and collaborating with SHFE on educational efforts and the development of products.”
The MoU lays the foundation for the exchange of educational resources and information with respect to pursuing cooperation and potential joint business initiatives between the two exchanges with regard to options and other derivatives products. SHFE Deputy CEO Peng Junheng, CBOE Chairman and CEO William J. Brodsky, and other Exchange officials finalized the MOU in a signing ceremony held today.
“CBOE is the world’s leading derivatives exchange for options products. Shanghai Futures Exchange has made great efforts in developing itself into a product-inclusive futures exchange, which mainly trades financial futures and options,” adds Dr. Peng Junheng, Shanghai Futures Exchange Deputy CEO. “We hope the partnership between SHFE and CBOE will provide both exchanges with more opportunities for growth.”
The Shanghai Futures Exchange, the largest of China’s three futures exchanges, is regulated by China’s Securities Regulatory Commission.