CME Disputes Reports Of Tie-Up With Indonesian Exchange

CME Group Inc. (CME) on Wednesday disputed reports this week that the futures exchange giant had struck a partnership with the Indonesia Commodity and Derivatives Exchange, or ICDX.

A spokesman for the exchange said in a statement that CME "has not entered into any type of an agreement" with the ICDX, and that reports of "a tie up allowing Indonesia investors to trade CME Group products were inaccurate."

The disputed news accounts highlight sensitivities around the development of markets for trading palm oil, as Indonesia vies with Malaysia in production of a key ingredient in some biodiesel fuels. Together, the two countries account for 85% of global palm oil production.

CME maintains a 25% stake in Bursa Malaysia Bhd's (1818.KU) derivatives unit following a 2009 deal that also opened up electronic trade between the two markets.

A change to Indonesian law last week is seen enabling the ICDX to facilitate local companies' transactions on overseas markets, and officials of that exchange had voiced interest in opening access to international commodity exchanges run by operators like CME.

-By Jacob Bunge, Dow Jones Newswires; 312-750-4117; jacob.bunge@dowjones.com.

CME (NASDAQ:CME)
Historical Stock Chart
From May 2024 to Jun 2024