The memorandum pledges the exchanges to discuss a variety of initiatives, including future product development, information sharing, and assistance with regulatory and compliance issues.
It marks another step in a growing trend of co-operation between Chinese futures exchanges and foreign counterparts. The Dalian Commodity Exchange also signed a similar contract with the Chicago Board of Trade (CBOT) in November. The CBOT hosted a symposium for its partner to share experience on operational and regulatory issues that ended this week.
SHFE was created by a merger of the three futures exchanges of Shanghai in 1999. Its three major futures products are aluminium, trading 4,310,996 contracts last year; copper, trading 22,332,576 contracts; and natural rubber, trading 53,515,928. Its total trading value was RMB6.05 trillion ($730 billion) last year.