An index development and product licensing agreement was signed Monday by the CME Group and China Securities Index Co. Ltd, company officials announced.
Under this agreement, CME Group will grant CSI a license to use certain CME Group market data for the purposes of developing, calculating and disseminating commodity indexes.
"We are pleased to enter into this strategic partnership with CSI," Terry Duffy, executive chairman and president of CME Group, said. "As Chinese futures markets internationalize, the new products that we develop with CSI will provide enhanced risk management opportunities to users in the global commodity markets."
The first product to be jointly developed will be the CSI CME Group China Commodity Consumption Index, which is based on the end-of-day settlement prices for CME Group futures contracts on soybeans and corn, listed on and subject to the rules of the Chicago Board of Trade. Other products will eventually include natural gas, West Texas intermediate crude oil and copper, listed on and subject to the rules of the New York Mercantile Exchange ; and gold and silver, listed on and subject to the rules of Commodity Exchange Inc.
The agreement also provides for the listing, trading and clearing of derivatives products based on the commodity indexes to be developed by CSI and CME Group.