SWI: Shanghai Gold Exchange Says in Talks With CME Group on Contracts
JUN 25, 2015 - 12:07
(Bloomberg) -- The Shanghai Gold Exchange is in discussions with the CME Group Inc. about listing each other’s contracts on their respective exchanges, according to Shen Gang, vice president of the SGE.
The Shanghai gold bourse will list its contracts and prices on the CME in the first phase of the cooperation, Shen said Thursday at a conference in Shanghai. The CME’s contract will then be available to members of the Chinese exchange during a second phase, she said. An agreement will be signed in August and trading may begin in the first quarter of next year, according to Shen.
Shen’s comments on the CME talks come as China is pushing to add liquidity to the country’s gold trade and broaden its influence on global commodity and currency markets. The SGE is preparing to start its own yuan-denominated gold fix while China’s largest banks are seeking to join the London price- setting process.
“If they do partner up, it will create a very robust marketplace,” Bernard Sin, the head of currency and metal trading at MKS (Switzerland) SA, a Geneva-based refiner, said by phone. “CME has been very excited to work with the Chinese, and the Chinese would really like to tap into CME for their experience.”
Donal McCarthy, a London-based spokesman for CME, declined to address specifically Shen’s comments.
“We are constantly in talks with market participants to better serve the needs of our customers,” McCarthy said.
The SGE will also open a trade link with the Hong Kong- based Chinese Gold & Silver Exchange Society on July 10, according to Shen. The Shanghai bourse is also in discussions with the Dubai Gold & Commodities Exchange to introduce yuan- denominated gold products in Dubai, she said.
--With assistance from Feiwen Rong in Beijing.
To contact Bloomberg News staff for this story: Alfred Cang in Shanghai at acang@bloomberg.net; Eddie van der Walt in London at evanderwalt@bloomberg.net To contact the editors responsible for this story: Ramsey Al-Rikabi at ralrikabi@bloomberg.net Lynn Thomasson
