CME Group Inc. (CME) said it will partner with Brazilian
exchange BM&F Bovespa S/A (BVMF3.BR) to cross-license a group
of products, including futures tied to the S&P 500.
Under the deal, Bovespa will license the main indicator of the
Brazilian stock market's average performance for trade on the
Chicago Mercantile Exchange, offering the equities benchmark
through dollar-denominated Ibovespa futures.
Bovespa will meanwhile launch dollar-denominated S&P 500
Index futures to be settled in the Brazilian real. The Brazilian
exchange will also license settlement prices for CME Group's
Mini-sized Soybean futures and New York Mercantile Exchange Light
Sweet Crude Oil futures, also known as the WTI contract.
The agreement provides room for the companies to license more
products in the future.
Bovespa expects to launch the Mini-sized Soybean futures in the
second quarter, while the WTI futures are slated for launch in the
third quarter. Each exchange expects to launch its respective
equity index futures in the second half.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com