News Release

CBOT and SGX Joint Venture Company Signs MOU With Bursa Malaysia

Mon Jan 23 2006

 

CBOT and SGX Joint Venture Company Signs MOU With Bursa Malaysia


 



January 23, 2006 – (Chicago, IL. Singapore) Joint Asian Derivatives Pte. Ltd, the CBOT and SGX joint venture company, today announced that it has signed a Memorandum of Understanding (MOU) with Bursa Malaysia (BM) to explore a licensing agreement for the use of BM's crude palm oil settlement price.



The licensing agreement will allow Joint Asian Derivatives Exchange (JADE) to use the settlement prices of BM's crude palm oil futures contract to price its proposed palm oil futures contract. Palm oil futures are among the agricultural suite of Asian commodities derivatives which are being considered initially for trading on the JADE electronic trading platform. Other product suites will include energy and metals.



Mr Hsieh Fu Hua, SGX CEO said, "The MOU represents another step in our relationship with Bursa Malaysia. We will continue to leverage on our partnerships to bring exciting products to the Asian marketplace."



Mr Yusli Mohamed Yusoff, CEO of Bursa Malaysia said, "We are excited with the opportunities this MOU presents and this further cements the credibility of the Bursa Malaysia CPO Futures Contract as the leading pricing benchmark in the global palm oil trade".



CBOT President and CEO Bernard W. Dan said, "We are encouraged by the progress our joint venture has made, as we work towards out market launch in the third quarter of 2006. The opportunity to work with Bursa Malaysia for developing a new crude palm oil contract to trade on the e-cbot platform is exciting for the marketplace."



Notes:



Joint Asian Derivatives Exchange (JADE)



JADE is the commodities derivatives market which will be established by the joint venture company, Joint Asian Derivatives Pte. Ltd. JADE is expected to commence operations by the end of the third quarter of 2006. In the initial phase, JADE will be operated by Singapore Exchange Derivatives Trading Limited (SGX-DT) under SGX-DT's existing license granted by the Monetary Authority of Singapore (MAS).



The joint venture company will develop commodity contracts to be traded on JADE. The new products will be hosted on the CBOT electronic trading platform, powered by LIFFECONNECT®. All trades will be cleared by the SGX derivatives clearing house. As a result of the CBOT's recent extension of their telecommunications network into Singapore, the new market will leverage the infrastructure and connectivity of the CBOT's global market participants in addition to those connected to SGX-DT..

 

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