Chicago Mercantile Exchange, Shanghai Futures Exchange and Shanghai Stock Exchange to Host China Derivatives Forum in Shanghai
August 22 2005 - 2:24PM
PR Newswire (US)
CHICAGO and SHANGHAI, Aug. 22 /PRNewswire-FirstCall/ -- Chicago
Mercantile Exchange (CME), the Shanghai Futures Exchange and the
Shanghai Stock Exchange today announced that they will jointly host
the "China Financial Derivatives Forum" in Shanghai, Sept. 26-27,
2005. The Forum will provide a unique opportunity for senior
government officials, regulators and global industry experts to
share knowledge about financial derivatives and the role they play
in managing risk in a market economy. It will cover a range of
topics to include financial engineering and risk sharing, legal and
regulatory frameworks, and equity and interest rate derivatives.
Chinese government officials who are confirmed to speak at the
Forum include Cheng Siwei, Vice Chairman, Standing Committee of the
National People's Congress, PRC, and Shang Fulin, Chairman, China
Securities Regulatory Commission. "This conference demonstrates the
high level of cooperation that exists between CME and our partner
exchanges in Shanghai," said CME Chairman Terry Duffy. "We look
forward to sharing our experiences about the benefits of the global
derivatives marketplace with such a distinguished audience, and we
are honored by those representatives of the Chinese government and
industry leaders who have chosen to participate in this Forum.
Their contributions will be very important to the success of this
event." "In recent years, with unremitting efforts SSE has
successfully developed and introduced some new products such as
ETFs and warrants, which have won positive praise and been well
recognized by local and overseas counterparts," said SSE Chairman
Geng Liang. "Product innovation has become a very important vehicle
to improve our core competence. SSE is planning to set up a
derivative product team in the near future. We have made
significant progress in designing index futures after several years
of research and development. This Forum, I believe, will be a good
chance for SSE to learn from our counterparts all over the world,
expedite the development and innovation of new products and
introduce well designed equity derivative products, which will meet
the demand of China's securities market and provide diversified
products to the investors." "China represents enormous
opportunities for business growth and plays a key role in our
global strategy," said CME CEO Craig Donohue. "Already we have
taken several actions to increase accessibility to CME products for
Asian market participants. Our Singapore telecommunications hub,
launched in late June, is improving access to our products and
reducing connectivity costs for CME market users in Asia. Last
year, we launched an Asian incentive pricing plan, which reduced
transaction fees for hedge funds and commercial banks in the
region. Strategic initiatives like these and our upcoming
conference are designed to foster the growth of exchange-traded
derivatives in Asia." "We think the Forum provides a valuable
opportunity for the Chinese financial officials to understand more
about the mechanism of financial derivatives markets in developed
economies such as the U.S.," said Mr. Jiang Yang, CEO, SHFE. "It is
our hope that the Forum will promote the communication between
Chinese officials and market participants and their global
counterparts, and consequently pave the way to the healthy and
steady growth of China's financial derivatives market. We cherish
the cooperation among our three exchanges that makes the Forum
possible." Leo Melamed, CME Chairman Emeritus, said, "John Hay, the
former American Secretary of State, once stated that the
Mediterranean was the ocean of the past, the Atlantic the ocean of
the present, and the Pacific the ocean of the future. This historic
derivatives forum in Shanghai is clear proof of John Hay's
prediction. The market reforms initiated under Deng Xiaoping have
borne fruit and brought the Republic of China to the threshold of
derivatives markets. It represents the dawn of a new era." In
addition to government and exchange officials, the speakers will
include respected industry leaders in futures, as well as from the
larger financial services arena and academia. Dr. Myron Scholes,
the 1997 winner of the Nobel Prize for economics and Chairman of
CME's Competitive Markets Advisory Council, is scheduled to provide
a keynote address. For more information about the China Financial
Derivatives Forum please visit http://www.china.cme.com/ . About
Chicago Mercantile Exchange: Chicago Mercantile Exchange Inc. (
http://www.cme.com/ ) is the largest futures exchange in the United
States. As an international marketplace, CME brings together buyers
and sellers on CME Globex electronic trading platform and on its
trading floors. CME offers futures and options on futures primarily
in four product areas: interest rates, stock indexes, foreign
exchange and commodities. The exchange moved about $1.6 billion per
day in settlement payments in the first half of 2005 and managed
$43.7 billion in collateral deposits at June 30, 2005, including
$4.0 billion in deposits for non-CME products. CME is a wholly
owned subsidiary of Chicago Mercantile Exchange Holdings Inc.
(NYSE:CMENASDAQ:CME), which is part of the Russell 1000(R) Index.
Chicago Mercantile Exchange, CME, the globe logo and CME Globex are
registered trademarks of Chicago Mercantile Exchange Inc. E-mini is
a trademark of CME. CLEARING 21 is a registered trademark of CME
and New York Mercantile Exchange, Inc. S&P, S&P 500,
NASDAQ-100, Nikkei 225, Russell 1000, Russell 2000, TRAKRS, Total
Return Asset Contracts and other trade names, service marks,
trademarks and registered trademarks that are not proprietary to
Chicago Mercantile Exchange Inc. are the property of their
respective owners, and are used herein under license. Further
information about CME and its products is available on the CME Web
site at http://www.cme.com/ . About Shanghai Futures Exchange:
Shanghai Futures Exchange (SHFE) was established in 1999 and
operates commodities futures trading and clearing. It is under the
direction and regulation of the China Securities Regulatory
Commission (CSRC). At present, futures contracts listed on SHFE are
copper cathode, aluminum, natural rubber and fuel oil. SHFE upholds
a strategic goal as to being a regulated, efficient, transparent
and diversified futures exchange that mainly trades listed
financial derivatives. There are over 200 firms now registered as
members, which are disaggregated as futures commission merchant and
proprietary traders. SHFE is a totally electronic exchange. It has
already distributed more than 250 distant trading terminals all
over China, so the market users can have easy access to the market
from nationwide. Over the recent years, with the ever-increasing
trading activities and scale on its markets, SHFE has exerted a
deeper impact. Its status as one of the three price-fixing centers
in the global copper market is further consolidated, its natural
rubber prices are watched closely by the global users and the
listing of fuel oil futures unfolded the exploration into energy
futures. Meanwhile, SHFE spares no efforts in the research and
preparation for the listing of financial futures and options. About
Shanghai Stock Exchange: Shanghai is the first city in Mainland
China to experiment with company stocks, stock trading and stock
exchange. The history of stock trading in China can be traced back
to the 1860s. On November 26, 1990, Shanghai Stock Exchange
(hereafter referred to as "SSE") was established, which opened for
trading on December 19. By the end of 2004, the Shanghai Stock
Exchange (SSE) has a total of 996 listed securities and 837 listed
companies. As a collectivity, these company stocks have a total
market capitalization of RMB 2,601.434 billion yuan. The number of
investors with accounts reached 37.87 million. In 2004, RMB 45.6901
billion was raised through IPO and secondary listings at the
Exchange. The SSE computer system has reached world-class standard
after several rounds of system upgrading. It has a daily processing
ability of 29 million orders or 60 million transactions, with a
breath-taking processing power of 16000 transactions per second.
The SSE dedicated satellite telecommunications network has the
largest user base in China. Built with the state-of-art technology,
this network consists of 3000 one-way substations and 1800 two-way
substations. For more information, please visit our Web site:
http://www.sse.com.cn/ . DATASOURCE: Chicago Mercantile Exchange
Inc. CONTACT: Anita S. Liskey, +1-312-466-4613, or Pamela Plehn,
+1-312-930-3446, , both of CME; Yang Ke of SHFE, 86-21-68400000, ;
or Yang Xin of SSE, 86-21-68806146, Web site: http://www.cme.com/
http://www.sse.com.cn/ http://www.china.cme.com/
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