JPX and CFFEX Sign Memorandum to Enhance Cooperation in Derivatives Markets

Japan Exchange Group, Inc. (JPX) and China Financial Futures Exchange, Co. Ltd. (CFFEX) today signed a memorandum of understanding to enhance cooperation in derivatives markets.

JPX and CFFEX will collaborate on initiatives and promotional activities that encourage the use of derivative products listed on JPX and CFFEX markets for investment activities by market participants in Chinese and Japanese markets, including trades to enhance the liquidity of ETFs listed under the Japan-China ETF Connectivity scheme.

JPX Group CEO Kiyota Akira stated: "I am pleased that we have agreed to collaborate to encourage derivatives trading on the two exchanges today. We hope that this agreement will contribute to making derivative products listed on both exchanges more convenient for market participants in both countries, such as by improving the liquidity of ETFs listed under the Japan-China ETF Connectivity scheme. In cooperation with CFFEX, we will work toward developing both derivative markets, contributing to further developments in the capital markets of both countries."

Japan-China ETF Connectivity scheme

Utilizing the investment quotas and other arrangements for the scheme, Japan-China ETF Connectivity enables the listing of feeder ETFs of ETFs investing in Japanese or Chinese assets, thereby creating a link between the ETF markets of both countries.