Singapore Gains Step Closer to Being China Hub, SGX Signs MOU with CFFEX

Singapore Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (SGX) and China Financial Futures Exchange (CFFEX) have signed a Memorandum of Understanding (MOU) Memorandum of Understanding (MOU) A memorandum of understanding (MOU) is defined as a nonbinding agreement between two or more parties that outlines the terms and details of an understanding. This includes each parties’ overall requirements and responsibilities. An MOU is seen as the first stage in the formation of a formal contract between two or more parties. These contracts are used throughout many industries, between companies, authorities, regulators, and individuals.At its core, an MOU is not legally binding though is view A memorandum of understanding (MOU) is defined as a nonbinding agreement between two or more parties that outlines the terms and details of an understanding. This includes each parties’ overall requirements and responsibilities. An MOU is seen as the first stage in the formation of a formal contract between two or more parties. These contracts are used throughout many industries, between companies, authorities, regulators, and individuals.At its core, an MOU is not legally binding though is view Read this Term) to cooperate in the development of the derivatives markets in China and Singapore. The agreement was signed in Beijing, China, between Mr Rong Zhiping, Deputy CEO of CFFEX and Mr Magnus Böcker, CEO of SGX.

Under the MOU, both exchanges will jointly explore possible areas of cooperation including product and market development, information sharing and human resources training. With the agreement, both exchanges will also consider synergies to better address the demands and needs of market participants in China and Singapore.

“Our strategic goal is to establish a world class exchange, so it is necessary to draw from the overseas markets and cooperate closely with our international peers. CFFEX values the friendship with SGX and expects to promote the cooperation in common interests”, said Mr Rong Zhiping, Deputy CEO of CFFEX.

“We consistently pursue new opportunities to enhance our unique offering of Asian derivatives to satisfy the diverse needs of our global customers. This MOU marks a significant milestone for SGX and reinforces our commitment to the China market. We look forward to sharing insights and expertise with CFFEX to further develop both our markets,” said Mr Magnus Böcker, CEO of SGX.

Singapore’s premier trading venue, the SGX announced its plan to launch RMB currency futures in Q3 of 2013. The move follows on from HKEX’s RMB FX futures contract.