UPDATE:CME To Take Minor Stake In Bursa Malaysia Derivative Operations
August 11 2009 - 12:35AM
Dow Jones News
The CME Group Inc. (CME) will take a minor equity stake in Bursa
Malaysia Bhd's (1818.KU) derivatives business, the Malaysian
stock-exchange operator said Tuesday.
Bursa Malaysia Chief Executive Yusli Mohamed Yusoff said on the
sidelines of a seminar that the deal is expected to be completed
"within the next few weeks."
The initiative is subject to regulatory approval, Bursa said in
a statement.
With this strategic partnership, the CME Group will use Bursa
Malaysia's ringgit-denominated crude palm oil futures contracts or
FCPO settlement prices, which will enable the CME Group to develop
a US dollar-denominated cash-settled CPO futures contract and its
related options for listing on one of the CME Group's U.S.
registered exchanges.
This product is expected to be traded on the CME Globex, which
is the CME Group's electronic trading platform.
"Our proposed strategic partnership with Bursa Malaysia will
further enhance our globalization efforts by facilitating our
customers' efficient access to Bursa Malaysia's important markets,"
said Craig Donohue, Chief Executive Officer of CME Group in the
same statement.
"This proposed partnership will allow us to continue to expand
our transaction processing business opportunities, increase our
presence in Asia, as well as help our Malaysian partners grow their
business."
Yusli Mohamed Yusoff, Chief Executive of Bursa Malaysia, said
the move is aimed at globalizing the Malaysian CPO futures
market.
- By Elffie Chew, Dow Jones Newswires; (603) 2026 1233;
elffie.chew@dowjones.com