Bursa Malaysia Derivatives, the Shanghai Futures Exchange (“SHFE”) and the Shanghai International Energy Exchange (“INE”) on Tuesday signed a Memorandum of Understanding (“MoU”) with the intent to strengthen the existing business partnership.
The MoU will commit the named Exchanges to share information and best practices pertaining to product development, market operations, and in the areas of common interest for all three markets.
“The signing of this MoU is a positive development that will lay the groundwork for a long-term relationship between Bursa Malaysia Derivatives, SHFE and INE,” said Samuel Ho, Chief Executive Officer of Bursa Malaysia Derivatives. “Aside from driving the growth of the ASEAN derivatives markets, this collaboration will indirectly support and contribute towards the China- Malaysia economic trade, given China’s position as Malaysia’s largest trading partner and rubber importer.
“We look forward to working with SHFE and INE on the development of new products that will not only complement existing offerings but will also meet the needs of increasingly sophisticated customers,” added Samuel Ho.
Mr. Wang Fenghai, Chief Executive Officer of SHFE and INE said that the signing of the MoU between SHFE, INE, and Bursa Malaysia Derivatives is the culmination of the three exchanges’ close friendship over the years. He also added that SHFE and INE are keen to collaborate with Bursa Malaysia Derivatives in order to learn while deepening mutual understanding of each other’s markets, and provide more risk management tools to investors.
Beyond strengthening the partnership with Bursa Malaysia Derivatives, the MoU is part of SHFE and INE’s commitment to opening up China’s futures market. Currently, INE has attracted overseas investors from more than 20 countries and regions across six (6) continents, including Asia, Europe, North America, South America, Africa, and Oceania. It also has the most international products than any other China’s commodity futures exchanges.