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CBOT AND SGX JOINT VENTURE COMPANY SIGNS MOU WITH BURSA MALAYSIA.
BackJan 23, 2006
23 Jan 2006
JOINT NEWS RELEASE CBOT and SGX Joint Venture Company Signs MOU with BURSA MALAYSIA
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 Berhad (Bursa Malaysia) to explore a licensing agreement for the use of Bursa Malaysia's crude palm oil settlement price.
The licensing agreement will allow Joint Asian Derivatives Exchange (JADE) to use the settlement prices of Bursa Malaysia'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 Berhad 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."