Chicago Mercantile Exchange (CME) and China Foreign Exchange Trade System and National Interbank Funding Center (CFETS) have announced a deal that will allow Chinese financial institutions and investors to electronically trade CME FX and interest rate contracts.
Industry sources said the multi-year agreement could provide CME with a valuable distribution channel into the Chinese market. CFETS, the only foreign exchange and interbank money market in China, is operated by People's Bank of China.
As part of the agreement, CFETS would become a CME super-clearing member, providing services for investors based...