Chicago Mercantile Exchange (CME), and China Foreign Exchange Trading System & National Interbank Funding Center (CFETS) signed a memorandum of understanding (MOU) last Tuesday to develop fx derivatives in China.
The announcement marks the second MOU for CME with a Chinese trading entity in the past two years. The exchange signed an MOU with Shanghai Futures Exchange in March 2003 and has since licensed its SPAN margining system to that exchange.
Even though the Chinese Renminbi (RMB) has been a fixed rate currency, CME and US government officials believe that China is heading toward a more open economy and floating rate currency....