Malaysia and Shanghai Sign MoU to Bolster Collaboration on Derivatives

Bursa Malaysia Derivatives, the SHFE (Shanghai Futures Exchange) and Shanghai INE (Shanghai International Energy Exchange) have signed a new MoU to bolster their collaboration on derivatives.

The MoU will commit the exchanges to share information and best practices pertaining to product development, market operations, and other areas of common interest for all three markets.

"The signing of this MoU is a positive development that will lay the groundwork for a long-term relationship between Bursa Malaysia Derivatives, SHFE and INE," said Samuel Ho, chief executive officer at Bursa Malaysia Derivatives.

"Aside from driving the growth of the ASEAN derivatives markets, this collaboration will indirectly support and contribute towards the China-Malaysia economic trade, given China's position as Malaysia's largest trading partner and rubber importer."

"We look forward to working with SHFE and INE on the development of new products that will not only complement existing offerings, but will also meet the needs of increasingly sophisticated customers."

Wang Fenghai, chief executive of SHFE and INE, said the MoU will deepen the exchanges mutual understanding of each other's markets, and enable them to provide more risk management tools to investors.

Beyond strengthening the partnership with Bursa Malaysia Derivatives, the MoU is part of SHFE and INE's commitment to opening up China's futures market, Wang said.